Positively Electrifying – Quebec’s Most Ambitious Energy RFP Announcement to Date for 2300 MW of Renewable Energy
The Government of Quebec and Hydro-Québec announced on April 20, 2022, the launch of two new RFPs for a total block of 2,300 MW of renewable energy. This announcement effectively launches the largest wind and renewable energy procurement project in the Province’s history, adding to the ongoing two RFPs for 780 MW of renewable energy and the recently announced three wind projects totalling 1,200 MW to be jointly developed by Boralex, Énergir and Hydro-Québec.
This announcement comes on the heels of last month’s release by Hydro-Québec of its Strategic Plan 2022–2026: For an Efficient Energy Transition. The plan outlines the utility’s vision of the path forward for Québec’s ambitious transition towards a low-carbon economy. As alluded to in our 2022 Power Perspectives publication, Hydro-Québec is aware of its growing energy demand and the need to develop new power supply infrastructure and projects. This could come in the form of both upgrades to existing grid infrastructure and the addition of new power facilities and infrastructure in the coming years, with the goal of sourcing an additional 100 TWh of clean energy by 2050.
This latest RFP announcement is part of Quebec’s 2030 Plan for a Green Economy, launched in November 2020. The two RFPs will be led by Hydro-Québec, which projects it will need an additional 20 TWh of energy by 2029 to meet its customer demands. The Government implied that the new RFPs will have a structure similar to that of the current 300 MW and 480 MW RFPs. In addition, the 1,000 MW block will be reserved for wind energy and the slightly larger block of 1,300 MW will be open to all forms of renewable energy electricity production, such as solar, biomass, hydroelectric, and wind.
The Government reaffirmed its commitment to making these RFPs a tool for regional economic development, and the RFPs will promote community participation, collaboration with Indigenous peoples, and other similar measures. The Government also intends to include, in addition to this community participation component, a “buy local” component for at least one of the two RFPs, in order to encourage local spending, especially in the Gaspésie, Magdalen Islands and the Matanie regions of Québec.
Additional information on these RFPs will be provided eventually in two draft regulations to be published in the Gazette officielle du Québec, which will allow for a 45-day consultation period.
Our team at McCarthy Tétrault continues to closely follow the development of the Quebec RFPs, as well as the Quebec energy developments generally. If you would like more information about renewable energy RFPs, including project development, financing or regulatory aspects, we are here to help.
Please contact Louis-Nicolas Boulanger, Mathieu Leblanc, Jacob Stone or any other member of the Power Group at McCarthy Tétrault with any questions or for assistance.
renewable energy electricity purchase agreement Wind RFP Submission