Hydro-Québec has initiated the export of electricity to New York City through a long-term agreement, a move criticized due to increased demand and lower reservoir levels in Quebec. The Crown corporation activated a new transmission line on June 1, committing to supplying 10.4 terawatt-hours of electricity yearly to New York City from its Hertel post in La Prairie, Que.
Critics, including Parti Québécois energy critic Pascal Paradis, have raised concerns about exporting electricity amid tight supply conditions and depleted reservoirs. Despite this, Minister Bernard Drainville expressed confidence in Hydro-Québec’s ability to manage energy reserves effectively, emphasizing the need for energy efficiency and new electricity sources.
The export deal coincides with Hydro-Québec facing some of its lowest energy reserves in years, attributed to below-average precipitation in northern Quebec. Reports indicate a decline in energy stocks over the next few years, highlighting the utility’s challenge in meeting export commitments while managing domestic demand.
The Hertel-New York interconnection project, spanning 57.7 kilometres, aims to provide clean energy to New York City. Experts note the impact of not just drier conditions but also a surge in electricity demand driven by Quebec’s economic growth and electrification initiatives. Despite challenges, energy policy professor Pierre-Olivier Pineau views the export agreement positively for promoting decarbonization.
Hydro-Québec assures that Quebec’s energy needs remain a top priority, with the new bidirectional transmission line enhancing flexibility to manage imports and exports effectively. The utility can leverage favourable market prices to import electricity and preserve water reserves, subsequently increasing exports during periods of high demand and prices.
The transmission line, recognized as North America’s longest underground and underwater high-voltage direct current line, became operational in mid-May after a decade-long construction phase. The project also involves an ownership agreement with Kahnawà:ke, granting the community a significant stake in the line. Grand Chief Cody Diabo lauded the partnership as a positive step towards reconciliation and equitable collaboration.
With the export agreement expected to yield approximately $34 billion US in revenue, Hydro-Québec positions Quebec as a key player in North America’s energy transition, directly linking its hydroelectric system with one of the continent’s major urban centers.