Update: First Solar RFP in Québec by December 31, 2024

As reported in our previous post last spring, the Québec Government announced on March 26, 2024 that it would set aside a block of 300 MW for an upcoming solar energy procurement by Hydro-Québec.

On September 18 2024, official details of the RFP were released in an order-in-council published in the Gazette officielle du Québec. The enacted regulation requires Hydro-Quebec to hold two calls for tenders, as early as December 31, 2024 for a minimum of 150 MW, and the other by December 31, 2026 for the remaining balance. In addition, all 300 MW procured in the context of those RFPs are required to be interconnected to the Hydro-Québec grid by December 31, 2029.

To manage the variable production output of solar energy, the RFP indicates that solar energy production will be supported by a balancing and supplementary power service, in the form of an energy integration agreement for variable energy which would be secured with either Hydro-Québec or another energy producer in Québec.

Context of the RFP

The official launch of this solar RFP confirms the Québec government’s interest in laying the foundations for a Québec solar industry. There are currently no significant commercial solar projects developed or in development in the Province, by either Hydro-Québec or private producers. As of 2022, solar power accounted for a modest 22 MW of energy production capacity in the Province, with Hydro-Québec operating two experimental photovoltaic plants with a combined output of 9.5 MW.

Next Steps for the RFP

A stated goal for the RFP is to favour the development of local energy sources and reduce reliance on Hydro-Quebec’s transmission network. To that end, the Québec Government has shared its preliminary guidelines on the economic, environmental and social impacts of the RFP in a second order-in-council, published on September 25, 2024. The RFP would prioritize projects built on brownfield lands (i.e. lands with pre-existing uses), with electricity generation being a secondary use, unless the project aims to revitalize an underused area. Other requirements are reflective of past wind energy RFPs, with projects expected to maximize Québec content and to encourage partnerships with local municipalities, communities, and Indigenous groups. The deadline to submit bids to Hydro-Québec has yet to be announced.

The regulation enacting the RFP came into effect on October 3, 2024, and it is anticipated that official details of the RFP will be issued by Hydro-Québec shortly.

Our team at McCarthy Tétrault closely follows new developments in Québec RFPs. If you would like more information about this and other energy matters here in Québec, we are here to help. Please contact Louis-Nicolas Boulanger, Mathieu LeBlanc, Jacob Stone, or Julie Belley Perron or any other member of the energy group at McCarthy Tétrault with any questions or for assistance.