This is a major blow for Hydro-Québec in a context where it does not have enough electricity to power all the industrial projects that require access to the network. In a decision rendered on September 10, the Régie de l’énergie forced the Crown corporation to power a cryptocurrency project in the Bas-du-Fleuve region and to reserve megawatts for other projects in the field.
The decision, first reported by The Presswill be contested, Hydro-Québec confirms to us.
This decision has the effect of allocating a significant amount of electricity to the cryptocurrency industry, in a context where energy volumes for new projects, particularly decarbonization projects, are limited.
This shows that we need to think about the tools needed to make the right collective decisions on allocating energy resources to desirable sectors of activity.
adds the state company.
Currently, companies are complaining about not having access to Hydro-Québec’s megawatts (MW), for example Les Forges de Sorel, which would have liked to obtain 16.5 MW to decarbonize.
The megawatts had been promised to the project
The Energy Board concludes that Hydro-Québec must honour the commitment it made to the Énergie Flumen project, initially planned near Rivière-du-Loup and then relocated to Matane.
In January 2020, as part of a tender to distribute a 300 megawatt (MW) block to the crypto industry, Énergie Flumen was awarded 20 MW.
In June 2023, at the request of Hydro-Québec, the project was revised downwards to 17.5 MW. The state-owned company then sent a draft connection agreement to the company.
But, surprise, in December 2023, Hydro-Québec summoned Énergie Flumen to a meeting and announced that it was suspending the project.
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Hydro-Québec headquarters in Montreal (Archive photo)
Photo: Radio-Canada / Ivanoh Demers
Two Hydro-Québec directors are present. According to the Régie’s decision, one of the two directors allegedly stated that it was justified to withdraw the megawatts from Énergie Flumen, by the energy context and the very tight energy balances
.
However, according to the Régie, despite the context, Hydro-Québec could not refuse to sign the agreement.
By refusing to sign the connection agreement and failing to connect and supply Flumen in accordance with the terms of this agreement, the Distributor [Hydro-Québec] violates Article 19.1.3 of the Terms of Service and its obligation to serve.
The Régie also requires the state company to reserve the unused 2.5 MW for cryptocurrency projects.
Since the adoption of a new law in 2023, it is the Quebec government that decides which projects of more than 5 MW can be connected, within the limits of Hydro-Quebec’s capacities.
This week, the Quebec Liberal Party requested that the 354 MW promised to the delayed Northvolt project be temporarily withdrawn from it and redistributed to others.
