The coalition criticizing the deal includes Greenpeace Canada, Nature Québec, Fondation Coule pas chez nous, Équiterre and Sortons la Caisse du carbone.
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QUEBEC — An agreement between Hydro-Québec and Énergir, the energy company formerly known as Gaz Métro, could be an expensive one for Quebecers, costing $7.2 billion by 2050, according to environmental groups that analyzed documents filed with the energy board.
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But Hydro-Québec says the groups are assuming costs that are unrelated to the deal.
The agreement seeks to reduce greenhouse gas emissions by converting gas heating to dual energy systems. Hydro-Québec would have to compensate Énergie for the loss of revenues, at a cost of $2.4 billion. But analyst Jean-Pierre Finet of the Regroupement des organismes environnementaux en énergie says a bigger cost awaits consumers.
As of 2026, once Hydro-Québec’s surplus energy is used up, the corporation will have to build new production facilities, which will be more costly per kilowatt hour.
Over 30 years, the lifetime of the dual energy equipment installation and amortization, Hydro would see a $4.8-billion loss, according to the analysis.
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“It’s not our calculation, it’s their figure,” Hydro-Québec spokesperson Maxence Huard-Lefebvre said in an interview. He said the $4.8-billion loss is not just related to the Énergir agreement, and “the cost will exist, whether there’s a deal with Énergir or not. We’re going to electrify building heating.”
He also said the deal would allow Hydro-Québec to reduce electricity demands at peak hours.
Complete electrification would take longer and cost $9.6 billion, he said, “exorbitant costs for society.”
As for the $2.4 billion in compensation, it’s “too soon to speculate,” Huard-Lefebvre said. The Régie de l’énergie has to decide on the first part of the deal. If the text is validated until 2026 and renewed, the cost would be $1.4 billion.
The coalition criticizing the deal includes Greenpeace Canada, Nature Québec, Fondation Coule pas chez nous, Équiterre and Sortons la Caisse du carbone.
The Quebec government has repeatedly said the deal is beneficial, and would reduce emissions by 540,000 tonnes by 2030.