Diversify Energy Supply and Integrate Renewable Energy Sources

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The Order in Council (O.C.) 1376-2024 deals with the implementation of a regulation under the Act respecting the Régie de l’énergie (chapter R-6.01) to establish a 300-megawatt block of photovoltaic solar energy. This regulation comes at a time when Quebec is pursuing various strategies to diversify its energy supply and integrate renewable energy sources.

The regulation is rooted in several sections of the Act respecting the Régie de l’énergie. Specifically, subparagraph 2.1 of the first paragraph of section 112 of the Act grants the Quebec government the authority to determine the energy blocks and the maximum prices associated with specific power supply sources. This power is necessary for setting the cost of electric power, especially in relation to section 52.2 of the Act, which deals with electricity pricing. It is also essential for the supply plan, as provided for in section 72 of the Act, and for guiding tender solicitations under section 74.1. Additionally, under subparagraph 2.2 of the same section, the government has the authority to regulate the timeframe for public tender solicitations for electric power distribution. The powers granted by these sections allow the government to move forward with implementing renewable energy projects such as solar power.

The regulation orders that a 300-megawatt block of photovoltaic solar energy must be integrated into Hydro-Québec’s main network by 31 December 2029. This target aligns with the government’s broader objectives of expanding renewable energy and reducing carbon emissions. The block will be sourced from solar energy and will involve balancing and complementary power services. To manage the variability of solar power generation, Hydro-Québec or another Quebec-based electricity supplier will enter into an energy integration agreement to ensure the stability and reliability of power supply. This agreement is crucial for handling the intermittency of solar energy, which depends on weather conditions and daylight hours.

An essential component of the regulation is its approach to tender solicitation. It mandates that Hydro-Québec, or the designated electric power distributor, must issue a public tender for at least half of the 300-megawatt solar energy block by 31 December 2024. The remaining capacity must be solicited by 31 December 2026. This phased approach is designed to ensure steady progress towards the full integration of the solar energy block by the 2029 deadline.

In terms of governance, the regulation empowers the electric power distributor to work within a specific timeframe and cost framework to ensure the efficient deployment of this renewable energy block. The aim is to ensure that the 300-megawatt block is available by the designated deadline, supporting Quebec’s broader energy goals, which include expanding its renewable energy portfolio and ensuring a sustainable, low-carbon energy future.

Quebec (OC 1376-2024) September 18, 2024