Framework Agreement Between Quebec and Newfoundland and Labrador: Our Experts' Perspective

• 14,000 MW by 2077, of which 10,000 MW to meet Quebec’s needs
• $65 billion to $70 billion in investment
• Churchill Falls : renewal of 5,290 MW of generation capacity for 50 years (3,660 MW for Quebec), and 725 MW added to the plant
• Gull Island : New 2,700 MW hydroelectric power plant
• Wind Power : 2,000 MW of new energy potential in Newfoundland and Labrador, still subject to feasibility studies
• Transport : Major Increase in Interprovincial Transport Capacity

Hydropower and wind power development overlap in three areas: grid stability, grid flexibility, and transmission capacity.

First, stability. The turbines at the Labrador dams rotate in sync with the Quebec grid. Their rotating mass stabilizes the frequency, a service that allows for the integration of more wind turbines without compromising the system’s stability.
Next, flexibility. The energy from Labrador also reduces the need to generate hydroelectric power in Quebec. The water remains in the reservoirs, thereby preserving the hydraulic capacity of the large dams, and this reserve gives the grid the necessary flexibility to quickly adapt to the variability of wind power.

That leaves transmission, which is currently the limiting factor. Transmitting 10,000 MW requires upgrading the power lines on the North Shore. These same lines will serve the region’s wind farms, which are currently limited more by transmission capacity than by wind resources. Hydro-Québec’s 2035 Action Plan calls for the addition of more than 10,000 MW of wind power, and grid connection capacity is one of the criteria that will determine where these wind farms can be built.

This agreement marks an important step in the energy transition in Quebec and Canada. The figures are impressive: 14 GW of capacity and an investment of $65 billion to $70 billion. They are commensurate with the challenge Quebec faces in electrifying the transportation, industrial, and mining sectors.

It is interesting to note the share of wind power generation, which stands at 2 GW, or 14% of the total. The synergy between this renewable energy source and hydroelectricity is remarkable, and Hydro-Québec acknowledges this in its 2035 Action Plan. The plan presents wind power as the best option to complement hydroelectricity and calls for tripling Quebec’s wind power capacity by 2035.

The 2 GW of wind power announced on Monday thus adds to the 10 GW announced by Hydro-Québec as part of Canada’s major wind power development projects. These new projects will be carried out in our northern climate and follow a global trend: northern regions are well-suited for wind power development due to their vast open spaces, sustained winds, and higher air density. These observations were confirmed in the latest market study conducted by the “Task54” research group of the International Energy Agency, in which Nergica represents Canada, which has estimated the size of the global cold-climate onshore wind market at 300 GW—nearly 30% of global onshore wind capacity. Monday’s announcement confirms Canada’s and Quebec’s leadership in cold-climate wind power, and the expertise in this field developed at Nergica through our research facility will certainly be called upon in the future.

For Quebec, electricity generation at Churchill Falls helps to geographically diversify our hydroelectric generation sites. The Robert-Bourassa project is nearly 1,000 km away from the Churchill Falls power plant as the crow flies. Over such long distances, the likelihood of varying rainfall amounts increases. The risk of experiencing the same level of low water flow everywhere at the same time decreases…though it does not disappear entirely. If precipitation is low, the shortfall varies from one region to another. This is precisely what makes diversification valuable: when one watershed is in deficit, another can take over. This type of issue in energy planning is worth examining as the portfolio expands.

Another area to watch is interconnection. Hopefully, the work being done to improve electricity transmission capacity between Quebec and Newfoundland and Labrador will lead the way and encourage other provinces to improve their interconnections and their ability to share electricity. A better-interconnected grid across the country directly facilitates the integration of variable renewable energy sources.