Québec Power 2014
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QUÉBEC POWER 2014 Economy - Hydropower - Wind - Solar - Biomass - Services REpower Systems is now Senvion. Engineering excellence has a new name. While our brand name has changed, our strengths and values remain the same – 25 years of engineering experience, and a dedicated team around the world. It is this powerful combination that has made us one of the most renowned onshore and offshore system providers, with well over 5,000 turbines installed worldwide and an output of more than 9.5 gigawatts. This capacity includes the most powerful serial offshore turbine ever installed – our 6.2M126. Senvion is building on the REpower legacy, continuing our successes and supplying your projects with the quality and dedication you have come to know and expect. www.senvion.com Senvion_PowerMag_206x279.indd 1 1/30/14 3:38 PM The world is at a crossroads. Never before yet to come out of the public consultations have decisions about energy been so held throughout the Fall of 2013. Dear instrumental in shaping the future. We have As the Association that brings together all the entered an era of bidirectional power grids, main players in renewable energy in Québec, readers, decentralised energy systems and highly we have noted several decisive actions the evolved technology, all designed to improve government can take at this critical juncture. the efficiency and reliability of services to Our suggested solutions include promoting the end user and to increase our resilience alternative forms of clean energy; allowing to extreme weather incidents. Expectations flexible business models that empower are high: economic growth must not suffer, regions to develop and benefit from the energy needs must be met and the planet energy sources available in their area; must continue to sustain life. Significant continuing wind power development until change is required if we are to meet the existing wind farms are due to be refurbished; challenges before us. permitting new small hydro projects where By now, Québec has developed tens of communities can benefit; setting a new thousands of megawatts of hydropower standard ensuring that a minimum content through its state-owned corporation, of biogas is injected in natural gas pipelines; Hydro-Québec. This has given the entire progressively converting government population access to electricity, spawned transportation fleets to biofuel, biomethane, a world-renowned industry and enticed CNG or LNG; encouraging the deployment of heavy industry to settle in the province. biogas technology in waste and waste water Power production, transport and distribution treatment plants; and providing financial were nationalised in the 40s and 60s, but aid to agricultural businesses to help them the government nevertheless continued to convert their facilities to biogas. support private production, recognizing that We are not yet in a position to completely small-scale hydro and biomass cogeneration forego our reliance on fossil fuels, but by were run more efficiently by private industry. replacing oil with the energy produced To mitigate hydrologic risk, the government through a 5% increase in the output of then implemented a policy that called for the renewables, we can reduce our consumption installation of 4000 MW of wind power. These by 3.3 Mtoe over the next decade. Québec megawatts, entrusted to private producers, has more than enough renewable sources resulted in the creation of a Québec wind to meet 21st century challenges. The AQPER power industry that now employs 5000 is ready, willing and able to take an active people. part in bringing to fruition the transition to At the time of writing, Québec is preparing renewable energy. • to unveil a new energy strategy. Among the end goals sought are meeting ambitious GHG reduction targets, growing the economy and positioning the province as a leader in renewable energy. The recent launch of an 800 Jean-François Samray MW wind power initiative is a step in the right CEO of the Québec Association for the direction. Concrete recommendations have Production of Renewable Energy (AQPER) Hydropower Québec can comfortably claim a spot among the world’s hydropower leaders. Water generates the overwhelming majority of the province’s energy, and Québecan expertise is renowned. 14-27 Wind Québec may be diversifying its energy supply, but its commitment to environmental sustainability remains strong. Wind power is the new growth sector in the province. 28-43 Unconventional Sources Innovation is a strength of Québec, a province which boasts the highest R&D spending in Canada. Utilizing this, Québec has made strong inroads into the fields of solar, biogas and biofuel. 44-55 Transmission and Distribution Transferring electricity around a province of 1.5 million km2 is no easy feat. To do so presents numerous challenges, yet also creates opportunities for innovative solutions and services. 56-69 Data Centers Québec holds certain unique advantages for the establishment of data centers: a cold climate and an abundance of cheap and green energy. The data center market has a strong future in the province. 70-79 Global Business Reports Industry Explorations CONTENTS Politics And Power Innovative Québec An Introduction to Québec Alternative fuels for and its Energy Industry provincial growth 8. An Introduction to Québec 46. Québec’s Solar Energy A BRIEF OVERVIEW OF THE PROVINCE AND ECONOMY IN THE SHADOW OF HYDRO AND WIND 10. Interview with L’Association de l'industrie 47. Interview with Rackam électrique du Québec (AIEQ) 48. Interview with Enerkem 11. Power in Québec 49. Biogas and Biofuels A STRATEGY TO ENERGIZE GROWTH MAKING USE OF QUÉBEC'S NATURE 12. Interview with the Québec Association for 51. Interview with Pöyry (Montreal) Inc. the Production of Renewable Energy (AQPER) 52. Interview with Biothermica 13. Interview with SGS Canada 53. Interview with Groupe Berlie-Falco 54. Interview with Innoventé 55. Interview with Shell Cansolv A Land Of Lakes And Rivers Vast Distances The Role of Hydropower in Transmission, Distribution Québec and Efficiency in Québec’s 16. Québec’s Hydropower Power Sector THE FLOW OF ELECTRICITY 17. Interview with Hydro-Québec 58. Transmission and Distribution 19. Interview with Hatch OPERATING AN EXTENSIVE NETWORK 21. Interview with Andritz Hydro Canada 60. Interview with Vizimax 22. Interview with Voith Hydro 61. Interview with Aggreko 23. Interview with exp. 62. Interview with Distech Controls 24. Alstom Power and Transport Canada 64. Interview with S&C Electric Canada 25. Québec’s Power Sector 65. Energy Efficiency THE SPARK OF CREATIVITY FIGHTING AGAINST LOW COSTS 26. Interview with Innergex 66. Interview with Blue Solutions Canada 27. Interview with Boralex Inc. 67. Interview with Sofame Technologies Inc. 68. Expert Opinion by Econoler ENERGY PERFORMANCE CONTRACTING AN UNTAPPED TOOL TO UNLEASH ENERGY EFFICIENCY POTENTIAL The Winds Of Change The Rise of Gaspé’s Wind Data Centers Sector Making Use of 30. Québec’s Wind Power Abundant Energy DIVERSIFICATION AND DEVELOPMENT OF REMOTE REGIONS 72. Data Hosting 31. Interview with GE Power and Water A NATURAL FITTING ENVIRONMENT 32. Interview with EDF en Canada 73. Interview with Kelvin Emtech 34. Interview with SDV Canada 74. Interview with CGI 35. Interview with Cartier Wind Energy Inc. 75. Interview with Cummins Eastern Canada 36. Québec’s Wind 76. Expert Opinion by Kelvin Emtech A MATURING SECTOR RISKS OUTGROWING ITS YEAR OF THE GREEN DATA CENTERS MARKET 77. Interview with Cogeco Data Services (CDS) 38. Interview with Atlas Copco Construction Equipment Canada 39. Interview with First Canadian Title 80. The Future of Québec’s Regulatory 40. Interview with Northland Power Environment 41. Interview with Senvion Canada Inc. 81. Index & Company Guide 42. Expert Opinion by First Canadian Title 82. Credits MITIGATING THE RISKS & SIMPLIFYING THE COMPLEX IN CLEAN ENERGY DEVELOPMENTS 43. Future Outlooks DIFFERENT PATHS FOR DIFFERENT PLAYERS This research has been conducted by Gabrielle Morin, Razvan Isac and Sulaiman Hakemy Edited by Barnaby Fletcher Graphic Design by Leigh Johnson and Gonazalo Da Cunha A Global Business Reports Publication For more information, contact [email protected], follow us on Twitter @GBReports or check out our blog at gbroundup.com. Courtesy of Senvion Industry Explorations Global Business Reports // QUÉBEC POWER 2014 5 Politics and Power: An Introduction to Québec and its Energy Industry “When you look at the market, in Québec, or anywhere else, you start with the consumer perspective, which is focused on the lowest cost of energy. Vestas is competing in brutally efficient markets, from Brazil to West Texas and we understand that at the end of the day, the price will drive the strategic decisions of what should be implemented in the power sector. Obviously, there are alternate sources of energy for alternate times and while wind does not always blow, finding its role in an integrated system, whether it is in Québec, the US or Northern Europe, can be a great solution. You have to be sensitive to geography and to the cost-efficiency of production and if you are incentivizing all the time, you are not going to create a long-term sustainable solution.” - Chris Brown, PRESIDENT, VESTAS AMERICAS Courtesy of EXP Global Business Reports EDITORIAL Industry Explorations Population and Workforce information Government Debt as a Share of GDP Source: Various by Province (%) An Introduction to Source: Statistics Canada, Conference Board of Canada, provincial governments 6,102,210 French as Mother Tongue