Hydro-Québec: Canada's Power Export King

The Globe and Mail reported that the U.S. Federal Energy Regulatory Commission (FERC) today approved a funding arrangement for the construction of a major transmission line that will cross into the United States from Quebec to become part of the U.S. energy grid.  FERC has even agreed to exclude the cost of the 1,200 MW transmission line from the rates charged to consumers.

Essentially, this means that FERC has, for the first time, recognized Hydro-Québec's hydroelectricity as a "clean" source of energy, meaning Quebec can now participate in the Obama clean energy policy and help New England move away from gas-fired power.

This new development certainly helps British Columbia's prospects in exporting electricity to the California market. Now, all BC has to do is woo the Californians.

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Ryan - May 25, 2009 9:01 AM

Fascinating. If the FERC recognizes Quebec's hydro as 'clean', what is preventing BC's hydro from being labelled this way - a State decision? One would think that California would be doing all that they could to enable, not restrict the purchase of hydro-power from BC.

Megawatt's Reponse: I agree, but it is complicated. Quebec, compared to BC, has less low-impact hydro (run-of-river), favouring the mega dams. At present, California mostly has an issue with out-of-state electricity imports, including BC's hydro (dam or ROR) electricity, and the environmental impact of ROR. So, given the context the FERC decision re: Quebec hydro, it should be seen as positive for BC hydro exports, but it should not be taken as a slam dunk approval of BC's hydro electricity as "clean". I understand the BC government is working on this very issue with California, so stay tuned.

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