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Hydro-Québec is getting closer to an agreement with New York

This is news for the neophyte that may seem a bit trivial, but it is very important. It is a recognition that gives us a significant competitive advantage for the future., rejoices the Minister of Natural Resources and Energy, Jonatan Julien, in an interview with Radio-Canada.

New York State has set itself the goal of using exclusively clean and renewable energy by 2040. To get there, however, it will have to make a major shift and end its many supplies from power plants. thermal.

In a decision issued Thursday, the State Public Services Department clarifies how this transition can take place. In particular, the department is creating a new supply category and recognizes that hydropower from existing power plants meets the definition of clean energy when delivered to New York City.

There were market interests, competition … There were people who had no interest in obtaining this recognition, but it was the pragmatic way that won.

Jonatan Julien, Minister of Natural Resources and Energy

This recognition of the clean and renewable nature of hydroelectric energy will allow electricity distributors who drink from this source to obtain credits from the State government, which will have the consequence of making the distribution more attractive. conclusion of an agreement with a producer like Hydro-Québec.

For example, a credit of 2 cents per kilowatt hour of clean energy would allow a distributor to acquire this energy at 8 cents rather than 10 cents, reducing the bill to be borne by the consumer by the same amount, illustrates Jonatan Julien.

New York] se disent : l’énergie propre et renouvelable nous permet de réduire nos GES, on veut cautionner cet élément-là, donc on subventionne cette énergie-là et maintenant que l’hydroélectricité est reconnue comme énergie propre, on a droit à ce crédit-là ","text":"Eux autres [à New York] se disent : l’énergie propre et renouvelable nous permet de réduire nos GES, on veut cautionner cet élément-là, donc on subventionne cette énergie-là et maintenant que l’hydroélectricité est reconnue comme énergie propre, on a droit à ce crédit-là "}}" lang="fr">Them others [à New York] say to themselves: clean and renewable energy allows us to reduce our GHGs, we want to support this element, so we are subsidizing this energy and now that hydroelectricity is recognized as clean energy, we are entitled to this credit- the , he explains.

Over the next 60 days, New York will launch a formal call for proposals in which Hydro-Québec intends to participate.

A long obstacle course

In April 2019, New York Mayor Bill de Blasio publicly announced that he wanted to enter into a supply contract with Hydro-Quebec. Discussions have since progressed, says Jonatan Julien.

These are very long obstacle courses, he argues. But the steps that have been taken in the last year, I would say that I am pleasantly surprised at the progress of the file. We are going fast and we are doing well, and currently, we have no bad news, quite the contrary. The hedges that we cross are important hedges. Yesterday’s announcement is major. And this recognition does not happen for nothing.

The Minister is also closely monitoring the progress of the power line project to be built in the State of Maine. Hydro-Québec won in 2018 a call for proposals launched by Massachusetts for the delivery of 9.45 TWh of energy per year for 20 years; however, a transport infrastructure must be built across Maine to allow this contract to materialize.

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