Sale and Trade of Electric Power
Québec and Ontario Sign Historic Economic Partnership
Montréal, December 15, 2016 -- Premier Philippe Couillard of Québec and Premier Kathleen Wynne of Ontario today attended the official signing of the historic electricity trade agreement between Hydro-Québec and the Independent Electricity System Operator of Ontario (IESO).
For the occasion, the premiers were accompanied by the Minister of Energy of Ontario, Glenn Thibeault, and the Minister of Energy and Natural Resources, Minister Responsible for the Northern Plan of Québec, Pierre Arcand. Under this agreement, the IESO will purchase a total of 14 terawatt hours (TWh) of electricity from Hydro-Québec over a seven-year period from 2017 to 2023.
The signing took place at the conference lunch of the Association de l'industrie électrique du Québec. On this occasion, the premiers also discussed the benefits of this historic partnership, potential new avenues of cooperation between the two governments, and each government's contribution to the energy transition to a low-carbon economy as a driver of economic development.
- For Hydro-Québec, this agreement is the largest contract since market deregulation.
- The Government of Québec introduced the Energy Policy 2030 with the aim of making Québec a North American leader in renewable energy and energy efficiency.
- Ontario will reduce the cost to its consumers by $70 million compared to its previous plan by importing 2 TWh of hydroelectric power each year from Québec to replace the use of natural gas.
- Together, Ontario and Québec form Canada’s largest economic region, accounting for about 56 per cent of GDP and 53 per cent of interprovincial trade.
“We are thrilled to finalize this historic agreement with Québec, our neighbour and strong partner. Combining our energy resources through this agreement complements a range of initiatives already underway in Ontario to provide reliable and more affordable electricity. The agreement also helps our shared fight against climate change by reducing Ontario’s electricity sector greenhouse gas (GHG) emissions by an estimated 1 million tonnes per year. We will continue to work with Québec to strengthen our partnership, provide strong leadership from the centre of Canada and create good jobs.”
“Québec’s energy resources must be used to promote the transition to a low-carbon 21st century economy. Hydroelectricity is a clean, renewable, affordable energy source. This agreement with our Ontario neighbour is a concrete example of an economic partnership that helps fight climate change. This agreement on the sale of energy, which will benefit both of our governments, is made possible by the complementary nature of our electricity systems. Québec will pursue its efforts to increase its exports to neighbouring provinces and American states.”
“The agreement reached today demonstrates the strong partnership between our two provinces and what subnational jurisdictions can achieve when working together. By importing 2 terawatt hours of clean electricity, enough to power the City of Kitchener for a year, Ontario will reduce carbon emissions and system costs by $70 million.”
“Our cooperation with the Government of Ontario is a historic first in electric power trade between two provinces. It is the largest agreement of its kind in Canadian history. Moreover, we will continue to cooperate with Ontario in jointly exploring opportunities provided by our two electric power systems. By joining forces to promote clean, renewable energy sources, we can start a genuine energy transition and transform our economies.”