The Generations Fund is a fund created by the government of Quebec to reduce public debt and, in so doing, mitigate the intergenerational transfer of the debt burden. Enacted in 2006, the Act to reduce the debt and establish the Generations Fund targets a debt-to-GDP ratio of no more than 45% by fiscal year 2025-26.
97-639: Quebec incurred little debt before the 1960s, but from 1958 it recorded deficits for 40 consecutive years. When the Generations Fund was created in 2006, Quebec's debt-to-GDP ratio was 42.7%, compared with the Canadian provincial government average of 25%. (Quebec's debt concept used was total debt, which was subsequently replaced by gross debt.) Interest on the debt was Quebec's third largest spending item after health and education, and represented 12.7 cents of each dollar of budgetary revenue. The Generations Fund
194-737: A greenhouse gas . According to the World Commission on Dams report, where the reservoir is large compared to the generating capacity (less than 100 watts per square metre of surface area) and no clearing of the forests in the area was undertaken prior to impoundment of the reservoir, greenhouse gas emissions from the reservoir may be higher than those of a conventional oil-fired thermal generation plant. In boreal reservoirs of Canada and Northern Europe, however, greenhouse gas emissions are typically only 2% to 8% of any kind of conventional fossil-fuel thermal generation. A new class of underwater logging operation that targets drowned forests can mitigate
291-463: A low-head hydro power plant with hydrostatic head of few meters to few tens of meters can be classified either as an SHP or an LHP. The other distinction between SHP and LHP is the degree of the water flow regulation: a typical SHP primarily uses the natural water discharge with very little regulation in comparison to an LHP. Therefore, the term SHP is frequently used as a synonym for the run-of-the-river power plant . The largest power producers in
388-536: A demonstration version of its Indica model, which will be road tested in Norway . Hydroelectricity Hydroelectricity , or hydroelectric power , is electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity , almost 4,210 TWh in 2023, which is more than all other renewable sources combined and also more than nuclear power . Hydropower can provide large amounts of low-carbon electricity on demand, making it
485-421: A flood and fail. Changes in the amount of river flow will correlate with the amount of energy produced by a dam. Lower river flows will reduce the amount of live storage in a reservoir therefore reducing the amount of water that can be used for hydroelectricity. The result of diminished river flow can be power shortages in areas that depend heavily on hydroelectric power. The risk of flow shortage may increase as
582-524: A guaranteed peak capacity of 34,342 MW —at a set price of 2.79¢ per kWh. Order in council 1277-2001 specifies quantities to be delivered for each of the 8,760 hourly intervals, which vary from 11,420 to 34,342 MW. According to the 2017 annual report the workforce stood at 19,786 employees, both permanent and temporary workers. And, a total of 1,304 employees were hired. In 1981, the Parti Québécois government redefined Hydro-Québec's mission by modifying
679-538: A key element for creating secure and clean electricity supply systems. A hydroelectric power station that has a dam and reservoir is a flexible source, since the amount of electricity produced can be increased or decreased in seconds or minutes in response to varying electricity demand. Once a hydroelectric complex is constructed, it produces no direct waste, and almost always emits considerably less greenhouse gas than fossil fuel -powered energy plants. However, when constructed in lowland rainforest areas, where part of
776-809: A large natural height difference between two waterways, such as a waterfall or mountain lake. A tunnel is constructed to take water from the high reservoir to the generating hall built in a cavern near the lowest point of the water tunnel and a horizontal tailrace taking water away to the lower outlet waterway. A simple formula for approximating electric power production at a hydroelectric station is: P = − η ( m ˙ g Δ h ) = − η ( ( ρ V ˙ ) g Δ h ) {\displaystyle P=-\eta \ ({\dot {m}}g\ \Delta h)=-\eta \ ((\rho {\dot {V}})\ g\ \Delta h)} where Efficiency
873-451: A larger amount of methane than those in temperate areas. Like other non-fossil fuel sources, hydropower also has no emissions of sulfur dioxide, nitrogen oxides, or other particulates. Reservoirs created by hydroelectric schemes often provide facilities for water sports , and become tourist attractions themselves. In some countries, aquaculture in reservoirs is common. Multi-use dams installed for irrigation support agriculture with
970-488: A network of 112,089 kilometres (69,649 mi) of medium and low voltage lines. The division is the sole electric distributor across the province, with the exception of 9 municipal distribution networks — in Alma , Amos , Baie-Comeau , Coaticook , Joliette , Magog , Saguenay , Sherbrooke and Westmount —and the electric cooperative of Saint-Jean-Baptiste de Rouville . Hydro-Québec Distribution buys most of its power from
1067-586: A positive risk adjusted return, unless appropriate risk management measures are put in place. While many hydroelectric projects supply public electricity networks, some are created to serve specific industrial enterprises. Dedicated hydroelectric projects are often built to provide the substantial amounts of electricity needed for aluminium electrolytic plants, for example. The Grand Coulee Dam switched to support Alcoa aluminium in Bellingham, Washington , United States for American World War II airplanes before it
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#17328844154801164-545: A relatively constant water supply. Large hydro dams can control floods, which would otherwise affect people living downstream of the project. Managing dams which are also used for other purposes, such as irrigation , is complicated. In 2021 the IEA called for "robust sustainability standards for all hydropower development with streamlined rules and regulations". Large reservoirs associated with traditional hydroelectric power stations result in submersion of extensive areas upstream of
1261-526: A result of climate change . One study from the Colorado River in the United States suggest that modest climate changes, such as an increase in temperature in 2 degree Celsius resulting in a 10% decline in precipitation, might reduce river run-off by up to 40%. Brazil in particular is vulnerable due to its heavy reliance on hydroelectricity, as increasing temperatures, lower water flow and alterations in
1358-448: A small TV/radio). Even smaller turbines of 200–300 W may power a few homes in a developing country with a drop of only 1 m (3 ft). A Pico-hydro setup is typically run-of-the-river , meaning that dams are not used, but rather pipes divert some of the flow, drop this down a gradient, and through the turbine before returning it to the stream. An underground power station is generally used at large facilities and makes use of
1455-455: A source of low-cost renewable energy. Alternatively, small hydro projects may be built in isolated areas that would be uneconomic to serve from a grid, or in areas where there is no national electrical distribution network. Since small hydro projects usually have minimal reservoirs and civil construction work, they are seen as having a relatively low environmental impact compared to large hydro. This decreased environmental impact depends strongly on
1552-414: A start-up time of the order of a few minutes. Although battery power is quicker its capacity is tiny compared to hydro. It takes less than 10 minutes to bring most hydro units from cold start-up to full load; this is quicker than nuclear and almost all fossil fuel power. Power generation can also be decreased quickly when there is a surplus power generation. Hence the limited capacity of hydropower units
1649-580: A target of 25% of cars sold in 2020 to be electric. The plan also called for provincial utility company Hydro-Quebec to develop a strategy for the deployment of public charging infrastructure. This resulted in the creation of "The Electric Circuit" ( French : Le Circuit Électrique ), the largest public network of charging stations for electric vehicles in Quebec . The first 30 charging stations were put into use in March 2012. The network's first 400V fast charger
1746-581: A total of 1,500 terawatt-hours (TWh) of electrical energy in one full cycle" which was "about 170 times more energy than the global fleet of pumped storage hydropower plants". Battery storage capacity is not expected to overtake pumped storage during the 2020s. When used as peak power to meet demand, hydroelectricity has a higher value than baseload power and a much higher value compared to intermittent energy sources such as wind and solar. Hydroelectric stations have long economic lives, with some plants still in service after 50–100 years. Operating labor cost
1843-512: A way to increase the government's annual dividend without resorting to privatization. Others, like columnist Bertrand Tremblay of Saguenay 's Le Quotidien , claim that privatization would signal a drift to the days when Quebec's natural resources were sold in bulk to foreigners at ridiculously low prices. "For too long, Tremblay writes, Quebec was somewhat of a banana republic, almost giving away its forestry and water resources. In turn, those foreign interests were exporting our jobs associated with
1940-448: Is hydroelectric power on a scale serving a small community or industrial plant. The definition of a small hydro project varies but a generating capacity of up to 10 megawatts (MW) is generally accepted as the upper limit. This may be stretched to 25 MW and 30 MW in Canada and the United States. Small hydro stations may be connected to conventional electrical distribution networks as
2037-645: Is also responsible for the production of power in remote communities not connected to the main power grid. The division operates an off-grid hydroelectric dam serving communities on the Lower North Shore and 23 small diesel power plants in the Magdalen Islands , in Haute-Mauricie and in Nunavik . In April 2011 the government of Quebec published a plan to encourage the adoption of electric vehicles, setting
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#17328844154802134-627: Is also usually low, as plants are automated and have few personnel on site during normal operation. Where a dam serves multiple purposes, a hydroelectric station may be added with relatively low construction cost, providing a useful revenue stream to offset the costs of dam operation. It has been calculated that the sale of electricity from the Three Gorges Dam will cover the construction costs after 5 to 8 years of full generation. However, some data shows that in most countries large hydropower dams will be too costly and take too long to build to deliver
2231-409: Is by far the largest source, followed by wind (2.16%) and biomass, biogas and waste (0.75%). The remainder came from nuclear (0.19%) and thermal (0.12%) generation. Emissions of carbon dioxide (1,130 tonnes/TWh), sulfur dioxide (4 tonnes/TWh) and nitrogen oxides (10 tonnes/TWh) were between 49 and 238 times lower than the industry average in northeastern North America. Imported electricity bought on
2328-512: Is dedicated exclusively to repaying Quebec's debt. The act establishing the Fund sets out a precise debt target – by fiscal year 2025-26 gross debt is not to exceed 45% of GDP. As of 31 March 2021, Quebec's gross debt was $ 210.1 billion, or 46.8% as a percentage of GDP. (Gross debt corresponds to the debt contracted on financial markets, plus the net liability for the pension plans and other future benefits of public and para-public sector employees, minus
2425-466: Is highest in the winter when solar energy is at a minimum. Pico hydro is hydroelectric power generation of under 5 kW . It is useful in small, remote communities that require only a small amount of electricity. For example, the 1.1 kW Intermediate Technology Development Group Pico Hydro Project in Kenya supplies 57 homes with very small electric loads (e.g., a couple of lights and a phone charger, or
2522-445: Is initially produced during construction of the project, and some methane is given off annually by reservoirs, hydro has one of the lowest lifecycle greenhouse gas emissions for electricity generation. The low greenhouse gas impact of hydroelectricity is found especially in temperate climates . Greater greenhouse gas emission impacts are found in the tropical regions because the reservoirs of power stations in tropical regions produce
2619-462: Is not an energy source, and appears as a negative number in listings. Run-of-the-river hydroelectric stations are those with small or no reservoir capacity, so that only the water coming from upstream is available for generation at that moment, and any oversupply must pass unused. A constant supply of water from a lake or existing reservoir upstream is a significant advantage in choosing sites for run-of-the-river. A tidal power station makes use of
2716-452: Is not generally used to produce base power except for vacating the flood pool or meeting downstream needs. Instead, it can serve as backup for non-hydro generators. The major advantage of conventional hydroelectric dams with reservoirs is their ability to store water at low cost for dispatch later as high value clean electricity. In 2021, the IEA estimated that the "reservoirs of all existing conventional hydropower plants combined can store
2813-410: Is often higher (that is, closer to 1) with larger and more modern turbines. Annual electric energy production depends on the available water supply. In some installations, the water flow rate can vary by a factor of 10:1 over the course of a year. Hydropower is a flexible source of electricity since stations can be ramped up and down very quickly to adapt to changing energy demands. Hydro turbines have
2910-413: Is often seen by Quebecers as a national success story and a source of pride. This could explain why various privatization proposals in the past have received little public attention. The liberal government has repeatedly stated that Hydro-Québec is not for sale. Like many other economists, Yvan Allaire, from Montreal's Hautes études commerciales business school, advocate increased electricity rates as
3007-590: Is one of these. The heir to the Couture wheel motor is now marketed by TM4 Electrodynamic Systems , a spin-off established in 1998 that has made deals with France's Dassault and Heuliez to develop an electric car, the Cleanova , of which prototypes were built in 2006. Hydro-Québec announced in early 2009 at the Montreal International Auto Show that its engine had been chosen by Tata Motors to equip
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3104-505: The 2008 election campaign . A Léger Marketing poll conducted in November 2008 found that a majority of Quebec respondents (53%) were opposed to his proposal to sell 7.5% of the company's equity to Quebec citizens and businesses, while 38% were in favour. Commenting on the issue on Guy A. Lepage 's talk show , former PQ Premier Jacques Parizeau estimated that such an idea would be quite unpopular in public opinion, adding that Hydro-Québec
3201-867: The Agreement Respecting a New Relationship Between the Cree Nation and the Government of Quebec between the Grand Council of the Crees and the Quebec government made possible the development of the Eastmain Reservoir . The Eastmain-1-A and Sarcelle powerhouses and Rupert River diversion project were completed for $ 5,000 million CAD. This will provide water power to the turbines at Eastmain-1 , Eastmain-1-A and Sarcelle powerhouses and will provide increased flow at
3298-552: The Balanced Budget Act of 1996, says University of Sherbrooke economist Luc Godbout. Former Vice-President and Chief Economist with the Public Sector Pension Investment Board , Marc Lévesque, notes that the 45% debt-to-GDP target is easy for the public to understand, and compliance is straightforward to verify. A criticism of the Generations Fund is that it acts as a "smokescreen" that merely obscures
3395-657: The Bonneville Dam in 1937 and being recognized by the Flood Control Act of 1936 as the premier federal flood control agency. Hydroelectric power stations continued to become larger throughout the 20th century. Hydropower was referred to as "white coal". Hoover Dam 's initial 1,345 MW power station was the world's largest hydroelectric power station in 1936; it was eclipsed by the 6,809 MW Grand Coulee Dam in 1942. The Itaipu Dam opened in 1984 in South America as
3492-553: The Eastern Interconnection . Although Quebec uses the same 60 hertz frequency as the rest of North America, its grid does not use the same phase as surrounding networks. TransÉnergie mainly relies on back to back HVDC converters to export or import electricity from other jurisdictions. This feature of the Quebec network allowed Hydro-Québec to remain unscathed during the Northeast Blackout of August 14, 2003 , with
3589-533: The Industrial Revolution would drive development as well. In 1878, the world's first hydroelectric power scheme was developed at Cragside in Northumberland , England, by William Armstrong . It was used to power a single arc lamp in his art gallery. The old Schoelkopf Power Station No. 1 , US, near Niagara Falls , began to produce electricity in 1881. The first Edison hydroelectric power station,
3686-778: The International Exhibition of Hydropower and Tourism , with over one million visitors 1925. By 1920, when 40% of the power produced in the United States was hydroelectric, the Federal Power Act was enacted into law. The Act created the Federal Power Commission to regulate hydroelectric power stations on federal land and water. As the power stations became larger, their associated dams developed additional purposes, including flood control , irrigation and navigation . Federal funding became necessary for large-scale development, and federally owned corporations, such as
3783-573: The Montreal area. Major projects included: Between 1944 and 1962, Hydro-Québec's installed capacity increased from 616 to 3,661 MW while lowering residential power rates by half in the Montreal area. Duplessis's conservative reign, now known as the Grande Noirceur , ended when he died in office in 1959. The subsequent election of the Quebec Liberal Party , led by Jean Lesage , marked
3880-659: The Québec interconnection of the North American Electric Reliability Corporation system, and is part of the Northeast Power Coordinating Council (NPCC). TransÉnergie manages the flow of energy on the Quebec network and ensures non-discriminatory access to all participants involved in the wholesale market. The non-discriminatory access policy allows a company such as Nalcor to sell some of its share of power from Churchill Falls on
3977-605: The Tennessee Valley Authority (1933) and the Bonneville Power Administration (1937) were created. Additionally, the Bureau of Reclamation which had begun a series of western US irrigation projects in the early 20th century, was now constructing large hydroelectric projects such as the 1928 Hoover Dam . The United States Army Corps of Engineers was also involved in hydroelectric development, completing
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4074-569: The Vulcan Street Plant , began operating September 30, 1882, in Appleton, Wisconsin , with an output of about 12.5 kilowatts. By 1886 there were 45 hydroelectric power stations in the United States and Canada; and by 1889 there were 200 in the United States alone. At the beginning of the 20th century, many small hydroelectric power stations were being constructed by commercial companies in mountains near metropolitan areas. Grenoble , France held
4171-469: The conservative think tank The Montreal Economic Institute —have often raised the issue, claiming that the company could be better managed by the private sector and that the proceeds from a sale would lower public debt . Without going as far as Boyer and Garcia, Mario Dumont , the head of the Action démocratique du Québec , briefly discussed the possibility of selling a minority stake of Hydro-Québec during
4268-488: The generation , transmission and distribution of electricity in Quebec, as well as the export of power to portions of the Northeast United States . More than 40 percent of Canada ’s water resources are in Quebec and Hydro-Québec is the fourth largest hydropower producer in the world. It was established as a Crown corporation by the government of Quebec in 1944 from the expropriation of private firms. This
4365-524: The generation , transmission , distribution and construction. In 2017, production division generated 1.9B $ of net income (68.4%), transmission division 0.55B$ (19.4%), distribution division 0.33B $ (11.7%), and construction division did not generate any income. Hydro-Quebec redistributes all profits back to the government. In 2017, the crown corporation contributed $ 4 billion to the Quebec government by means of net income ($ 2.8B), royalties ($ 0.7B), public utilities tax ($ 0.3B) and debt securities ($ 0.2B). In
4462-506: The potential energy of dammed water driving a water turbine and generator . The power extracted from the water depends on the volume and on the difference in height between the source and the water's outflow. This height difference is called the head . A large pipe (the " penstock ") delivers water from the reservoir to the turbine. This method produces electricity to supply high peak demands by moving water between reservoirs at different elevations. At times of low electrical demand,
4559-400: The water frame , and continuous production played a significant part in the development of the factory system, with modern employment practices. In the 1840s, hydraulic power networks were developed to generate and transmit hydro power to end users. By the late 19th century, the electrical generator was developed and could now be coupled with hydraulics. The growing demand arising from
4656-400: The 165-TWh heritage pool provided by Hydro-Québec Production at 2.79¢/ kWh . The division usually purchases additional power by entering into long-term contracts after a public call for tenders. For shorter term needs, it also buys power from the neighboring systems at market prices. As a last resort, Hydro-Québec Production can also provide short-term relief. Supply contracts above and beyond
4753-502: The 46 rural coops accepted Hydro-Québec's 1963 buyout offer, except Saint-Jean-Baptiste-de-Rouville which still exists. In 1964, the Province of British Columbia provided the Province of Quebec with a $ 100 million loan. $ 60 million from that loan went to Hydro-Québec. The loan faced controversy in the Quebec legislature. Major projects during this period included: Because of the economic climate, demand for electricity dropped significantly in
4850-652: The Boston area. Phase II of the James Bay Project started in 1987 and took nine years to complete. Construction of the Denis-Perron Dam began in 1994. Like its counterparts in the North American utility industry, Hydro-Québec was reorganized in the late 1990s to comply with electricity deregulation in the United States. The transmission division, TransÉnergie , was the first to be spun off in 1997, in response to
4947-434: The Generations Fund and investing the profits "Quebec is essentially issuing more debt than it really needs and taking on the risk of market corrections along the way." Hence, the investment returns of the fund should be viewed as compensation to taxpayers for bearing investment risk. Hydro-Qu%C3%A9bec Hydro-Québec is a Canadian Crown corporation public utility headquartered in Montreal , Quebec. It manages
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#17328844154805044-506: The Government of Quebec. Its residential power rates are among the lowest in North America. In Quebec , advocates for the creation of a public hydroelectric utility protested against high costs, poor rural electrification , and the lack of French speakers in management positions in hydroelectricity companies. In 1944, Montreal Light, Heat & Power company was nationalised, along with its subsidiary, Beauharnois Power, and Hydro-Québec
5141-463: The IEA released a main-case forecast of 141 GW generated by hydropower over 2022–2027, which is slightly lower than deployment achieved from 2017–2022. Because environmental permitting and construction times are long, they estimate hydropower potential will remain limited, with only an additional 40 GW deemed possible in the accelerated case. In 2021 the IEA said that major modernisation refurbishments are required. Most hydroelectric power comes from
5238-518: The Minister of Finance in collaboration with the Caisse. In 2018, then Quebec Premier Philippe Couillard credited the province's fiscal turnaround to the Generations Fund. TD Bank economist Rishi Sondhi says the Fund provides a testament to the Quebec government's priority to lower its debt burden. Quebec's debt levels and credit rating improved following the introduction of the Generations Fund, along with
5335-448: The U.S. Federal Energy Regulatory Commission 's publication of Order 888. In the same year, the U.S. Federal Energy Regulatory Commission granted Hydro-Québec a licence to sell wholesale electricity at market prices, enabling Hydro-Québec to expand its market. Hydro-Québec also acquired a substantial share of Noverco , controller of natural gas distributor Gaz Métro , to participate in that market in northeastern North America. In 2002
5432-475: The United States. TransÉnergie's high voltage network stretches over 33,630 km (20,900 mi), including 11,422 km (7,097 mi) of 765 and 735 kV lines , and a network of 514 substations. It is connected to neighbouring Canadian provinces and the United States by 17 ties, with a maximum reception capacity of 10,850 MW and a maximum transmission capacity of 7,994 MW. The TransÉnergie's network operates asynchronously from that of its neighbours on
5529-464: The ability to transport particles heavier than itself downstream. This has a negative effect on dams and subsequently their power stations, particularly those on rivers or within catchment areas with high siltation. Siltation can fill a reservoir and reduce its capacity to control floods along with causing additional horizontal pressure on the upstream portion of the dam. Eventually, some reservoirs can become full of sediment and useless or over-top during
5626-595: The balance between stream flow and power production. Micro hydro means hydroelectric power installations that typically produce up to 100 kW of power. These installations can provide power to an isolated home or small community, or are sometimes connected to electric power networks. There are many of these installations around the world, particularly in developing nations as they can provide an economical source of energy without purchase of fuel. Micro hydro systems complement photovoltaic solar energy systems because in many areas water flow, and thus available hydro power,
5723-404: The balance of the Generations Fund.) At the time the Generations Fund was created, it was difficult for the government to increase taxes. Instead, alternative sources of revenue were chosen that are allocated exclusively to the Fund. The Fund's main revenue source is water-power royalties paid by Hydro-Québec and private producers of hydroelectricity. Other revenue sources are mining revenues,
5820-716: The beginning of the Quiet Revolution , a period of reform and modernization. In 1962, the US government lent Quebec $ 300 million. The funds were used to acquire independent power companies. The new government gave Hydro-Québec an exclusive mandate to develop new sites. In 1963 the government authorized it to acquire private electricity distributors, including the Gatineau Power Company and the Shawinigan Water & Power Company Hydro-Québec achieved province-wide scope. All of
5917-442: The budget's bottom line. According to Alexandre Laurin of the C.D. Howe Institute , while the objective to repay public debt is laudable, the only way to do this is to produce budget surpluses. The Quebec government's practice of treating a payment to the Generations Fund as an expense, rather than an investment "makes sense only for political marketing." Globe and Mail columnist Barrie McKenna says that by directing revenues into
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#17328844154806014-464: The bulk of electricity generated and sold by the company. Non-hydro plants included the baseload 675-MW gross Gentilly nuclear generating station , a CANDU-design reactor which was permanently shut down on December 28, 2012 the 660-MW Tracy Thermal Generating Station , a heavy fuel oil-fired plant shutdown in March 2011 and two gas turbine peaker plants , for a total installed capacity of 36,971 MW in 2011. Hydro-Québec's average generation cost
6111-538: The company plans to build a new 1200-MW direct current link between the Des Cantons substation at Windsor, Quebec in Quebec's Eastern Townships and Deerfield, New Hampshire , with an HVDC converter terminal built at Franklin, New Hampshire . The US segment of the US$ 1.1 billion line, would be built by Northern Pass Transmission LLC , a partnership between Northeast Utilities (75%) and NSTAR (25%). In order to go ahead,
6208-404: The daily rise and fall of ocean water due to tides; such sources are highly predictable, and if conditions permit construction of reservoirs, can also be dispatchable to generate power during high demand periods. Less common types of hydro schemes use water's kinetic energy or undammed sources such as undershot water wheels . Tidal power is viable in a relatively small number of locations around
6305-505: The dams, sometimes destroying biologically rich and productive lowland and riverine valley forests, marshland and grasslands. Damming interrupts the flow of rivers and can harm local ecosystems, and building large dams and reservoirs often involves displacing people and wildlife. The loss of land is often exacerbated by habitat fragmentation of surrounding areas caused by the reservoir. Hydroelectric projects can be disruptive to surrounding aquatic ecosystems both upstream and downstream of
6402-403: The development of our natural resources with the complicity of local vultures". Left-wing academics, such as UQAM 's Léo-Paul Lauzon and Gabriel Sainte-Marie, have claimed that privatization would be done at the expense of residential customers, who would pay much higher rates. They say that privatization would also be a betrayal of the social pact between the people and its government, and that
6499-412: The early 1980s, which led to structural changes at Hydro-Québec. It became a joint stock company whose sole shareholder is Government of Québec , to which it pays an annual dividend. It was also given the mandate to export power and to work in any energy-related field. In 1986 the Quebec – New England Transmission began bringing power from the James Bay Project 1,100 kilometers (700 miles) south to
6596-690: The effect of forest decay. Another disadvantage of hydroelectric dams is the need to relocate the people living where the reservoirs are planned. In 2000, the World Commission on Dams estimated that dams had physically displaced 40–80 million people worldwide. Because large conventional dammed-hydro facilities hold back large volumes of water, a failure due to poor construction, natural disasters or sabotage can be catastrophic to downriver settlements and infrastructure. During Typhoon Nina in 1975 Banqiao Dam in Southern China failed when more than
6693-455: The effects of the large-scale deployment of electric vehicles on the power grid . Projects focus on technologies to increase range , improve performance in cold weather and reduce charging time . Hydro-Québec has been criticized for not having taken advantage of some of its innovations. An electric wheel motor concept that struck a chord with Quebecers, first prototyped in 1994 by Pierre Couture, an engineer and physicist working at IREQ,
6790-688: The exception of 5 hydro plants on the Ottawa River radially connected to the Ontario grid at the time. A new 1250-MW back to back HVDC tie has been commissioned at the Outaouais substation, in L'Ange-Gardien , near the Ontario border. The new interconnection has been online since 2009 and the 315 kV line is fully operational since 2010. One drawback of the TransÉnergie network involves the long distances separating
6887-399: The excess generation capacity is used to pump water into the higher reservoir, thus providing demand side response . When the demand becomes greater, water is released back into the lower reservoir through a turbine. In 2021 pumped-storage schemes provided almost 85% of the world's 190 GW of grid energy storage and improve the daily capacity factor of the generation system. Pumped storage
6984-515: The existing La Grande-1 generating station as well as Robert-Bourassa and the La Grande-2-A generator stations. Output will be 918 MW. Other stations commissioned since 1997 are: In 1988, all of Quebec and parts of New England and New Brunswick lost power because of an equipment failure at a substation on the North Shore . The March 1989 geomagnetic storm tripped circuit breakers on
7081-534: The forest is inundated, substantial amounts of greenhouse gases may be emitted. Construction of a hydroelectric complex can have significant environmental impact, principally in loss of arable land and population displacement. They also disrupt the natural ecology of the river involved, affecting habitats and ecosystems, and siltation and erosion patterns. While dams can ameliorate the risks of flooding, dam failure can be catastrophic. In 2021, global installed hydropower electrical capacity reached almost 1,400 GW,
7178-616: The generation sites and the main consumer markets. For instance, the Radisson substation links the James Bay project plants to the Nicolet station near Sainte-Eulalie , south of the Saint Lawrence, over 1,200 kilometres (750 mi) away. In 2011, TransÉnergie invested C$ 1.3 billion in capital expenditures, including C$ 460 million to expand its network. In addition to the new tie with Ontario,
7275-516: The heritage pool must be approved by the Régie de l'énergie du Québec and their costs are passed on to customers. The division signed one natural gas cogeneration agreement for 507 MW in 2003, three forest biomass deals (47.5 MW) in 2004 and 2005, and ten contracts for wind power (2,994 MW) in 2005 and 2008, all with private sector producers. It also signed two flexible contracts with Hydro-Québec Production (600 MW) in 2002. Hydro-Québec Distribution
7372-506: The highest among all renewable energy technologies. Hydroelectricity plays a leading role in countries like Brazil, Norway and China. but there are geographical limits and environmental issues. Tidal power can be used in coastal regions. China added 24 GW in 2022, accounting for nearly three-quarters of global hydropower capacity additions. Europe added 2 GW, the largest amount for the region since 1990. Meanwhile, globally, hydropower generation increased by 70 TWh (up 2%) in 2022 and remains
7469-519: The largest renewable energy source, surpassing all other technologies combined. Hydropower has been used since ancient times to grind flour and perform other tasks. In the late 18th century hydraulic power provided the energy source needed for the start of the Industrial Revolution . In the mid-1700s, French engineer Bernard Forest de Bélidor published Architecture Hydraulique , which described vertical- and horizontal-axis hydraulic machines, and in 1771 Richard Arkwright 's combination of water power ,
7566-731: The largest, producing 14 GW , but was surpassed in 2008 by the Three Gorges Dam in China at 22.5 GW . Hydroelectricity would eventually supply some countries, including Norway , Democratic Republic of the Congo , Paraguay and Brazil , with over 85% of their electricity. In 2021 the International Energy Agency (IEA) said that more efforts are needed to help limit climate change . Some countries have highly developed their hydropower potential and have very little room for growth: Switzerland produces 88% of its potential and Mexico 80%. In 2022,
7663-422: The markets account for most of these emissions. Hydro-Québec's expertise at building and operating a very high voltage electrical grid spreading over long distances has long been recognized in the electrical industry. TransÉnergie, Hydro-Québec's transmission division, operates the largest electricity transmission network in North America. It acts as the independent system operator and reliability coordinator for
7760-584: The open market in the State of New York using TransÉnergie's network, upon payment of a transmission fee. In recent years, TransÉnergie's Contrôle des mouvements d'énergie (CMÉ) unit has been acting as the reliability coordinator of the bulk electricity network for Quebec as a whole, under a bilateral agreement between the Régie de l'énergie du Québec and the Federal Energy Regulatory Commission of
7857-633: The plant site. Generation of hydroelectric power changes the downstream river environment. Water exiting a turbine usually contains very little suspended sediment, which can lead to scouring of river beds and loss of riverbanks. The turbines also will kill large portions of the fauna passing through, for instance 70% of the eel passing a turbine will perish immediately. Since turbine gates are often opened intermittently, rapid or even daily fluctuations in river flow are observed. Drought and seasonal changes in rainfall can severely limit hydropower. Water may also be lost by evaporation. When water flows it has
7954-460: The project must receive regulatory approval in Quebec and the United States. The proposed transmission line could be in operation in 2015. According to Jim Robb, a senior executive from Northeast Utilities, New England could meet one third of its Regional Greenhouse Gas Initiative commitments with the hydropower coming through this new power line alone. Hydro-Québec Distribution is in charge of retail sales to most customers in Quebec. It operates
8051-577: The province would be short-selling itself by divesting of a choice asset for a minimal short term gain. Hydro-Québec sources of energy supply (2013) On December 31, 2013, Hydro-Québec Production owned and operated 61 hydro plants —including 12 of over 1,000 MW capacity — with 26 major reservoirs. These facilities are located in 13 of Quebec's 430 watersheds , including the Saint Lawrence , Betsiamites , La Grande , Manicouagan , Ottawa , Outardes , and Saint-Maurice rivers. These plants provide
8148-450: The rainfall regime, could reduce total energy production by 7% annually by the end of the century. Lower positive impacts are found in the tropical regions. In lowland rainforest areas, where inundation of a part of the forest is necessary, it has been noted that the reservoirs of power plants produce substantial amounts of methane . This is due to plant material in flooded areas decaying in an anaerobic environment and forming methane,
8245-560: The research centre is located in Varennes , a suburb on the South Shore of Montreal . IREQ operates on an annual research budget of approximately C$ 100 million and specializes in the areas of high voltage, mechanics and thermomechanics, network simulations and calibration. Research conducted by scientists and engineers at IREQ has helped to extend the life of dams, improve water turbine performance, automate network management and increase
8342-502: The specific tax on alcoholic beverages, and investment income generated by the Fund itself. The book value of the Generations Fund was $ 12.2 billion on 31 March 2021. The Generations Fund made debt repayments of $ 1 billion in fiscal year 2013-14, $ 8 billion in 2018-19 and $ 2 billion in 2019-20. Sums allocated to the Generations Fund are managed by the Caisse de dépôt et placement du Québec in accordance with an investment policy determined by
8439-495: The terms of the social pact of 1944. The government issued itself 43,741,090 shares worth C$ 100 each, and the amended statute stated that Hydro-Québec would now pay up to 75% of its net earnings in dividends. This amendment to the Hydro-Québec Act started an episodic debate on whether Hydro-Québec should be fully or partially privatized. In recent years, economist Marcel Boyer and businessman Claude Garcia—both associated with
8536-684: The transmission capacity of high voltage power lines. Another research centre, the Laboratoire des technologies de l'énergie (LTE) in Shawinigan, was opened in 1988 to adapt and develop new products while helping industrial customers improve their energy efficiency . In the last 20 years, the institute has also conducted research and development work towards the electrification of ground transportation . Current projects include battery materials, including innovative work on lithium iron phosphate and nano-titanate, improved electric drive trains and
8633-509: The transmission network causing a nine-hour Quebec-wide blackout. In the North American ice storm of 1998 , five days of freezing rain collapsed 600 kilometres (370 mi) of high voltage power lines and over 3,000 kilometres (1,900 mi) of medium and low voltage distribution lines in southern Quebec. Up to 1.4 million customers were without power for up to five weeks. Hydro-Québec has created separate business units dealing with
8730-524: The world are hydroelectric power stations, with some hydroelectric facilities capable of generating more than double the installed capacities of the current largest nuclear power stations . Although no official definition exists for the capacity range of large hydroelectric power stations, facilities from over a few hundred megawatts are generally considered large hydroelectric facilities. Currently, only seven facilities over 10 GW ( 10,000 MW ) are in operation worldwide, see table below. Small hydro
8827-539: The world. The classification of hydropower plants starts with two top-level categories: The classification of a plant as an SHP or LHP is primarily based on its nameplate capacity , the threshold varies by the country, but in any case a plant with the capacity of 50 MW or more is considered an LHP. As an example, for China, SHP power is below 25 MW, for India - below 15 MW, most of Europe - below 10 MW. The SHP and LHP categories are further subdivided into many subcategories that are not mutually exclusive. For example,
8924-495: The year 2000 with the adoption of Bill 116, which amended the Act respecting the Régie de l'énergie , to enact the functional separation of Hydro-Québec's various business units. Legislation passed in 2000 commits the generation division, Hydro-Québec Production, to provide the distribution division, Hydro-Québec Distribution, a yearly heritage pool of up to 165 TWh of energy plus ancillary services—including an extra 13.9 TWh for losses and
9021-732: Was 2.11 cents per kWh in 2011. The company also purchases the bulk of the output of the 5,428-MW Churchill Falls generating station in Labrador, under a long-term contract expiring in 2041. In 2009, Hydro-Québec bought the 60% stake owned by AbitibiBowater in the McCormick plant (335 MW), located at the mouth of the Manicouagan River near Baie-Comeau , for C$ 616 million. In 2013, the energy sold by Hydro-Québec to its grid-connected customers in Quebec and exported to neighboring markets came almost exclusively from renewable sources. Hydro (96.78%)
9118-573: Was allowed to provide irrigation and power to citizens (in addition to aluminium power) after the war. In Suriname , the Brokopondo Reservoir was constructed to provide electricity for the Alcoa aluminium industry. New Zealand 's Manapouri Power Station was constructed to supply electricity to the aluminium smelter at Tiwai Point . Since hydroelectric dams do not use fuel, power generation does not produce carbon dioxide . While carbon dioxide
9215-515: Was created to manage the companies. Quebec Premier Adélard Godbout adopted a policy of investing 10 million dollars per year in rural electrification. However, in 1944 the government changed, and the new premier Maurice Duplessis was opposed to any form of government intervention in the economy. Local cooperatives were created to bring power to rural areas. Duplessis remained in power until 1960, and during that time there were no further nationalisations of companies, and Hydro-Québec mostly served
9312-541: Was followed by massive investment in hydro-electric projects like the James Bay Project . Today, with 63 hydroelectric power stations , the combined output capacity is 37,370 megawatts. Extra power is exported from the province and Hydro-Québec supplies 10 per cent of New England 's power requirements. The company logo, a stylized "Q" fashioned out of a circle and a lightning bolt, was designed by Montreal -based design agency Gagnon/Valkus in 1960. In 2018, it paid CA$ 2.39 billion in dividends to its sole shareholder ,
9409-605: Was installed in 2013. As of 2019, The Electric Circuit offers 2,389 public charging stations in Quebec and eastern Ontario . Usage is also compatible with the FLO and New Brunswick E-charge network adaptors. Hydro-Québec has made significant investments in research and development over the past 40 years. In addition to funding university research, the company is the only electric utility in North America to operate its own large-scale research institute, L' Institut de recherche d'Hydro-Québec (IREQ). Established by Lionel Boulet in 1967,
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