The governments of Ontario and Quebec are supporting a new 600 megawatt (MW) trade agreement between Ontario\u2019s Independent Electricity System Operator (IESO) and Hydro-Qu\u00e9bec that will optimize the use of existing electricity generation capacity in both provinces.<\/p>\n
During the Energy and Mines Ministers\u2019 Conference on August 30th, 2023, Ontario Minister of Energy Todd Smith and Quebec Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montr\u00e9al Region Pierre Fitzgibbon were joined by IESO Vice-President of Corporate Relations, Stakeholder Engagement and Innovation Carla Nell and Hydro-Qu\u00e9bec Senior Director \u2013 Energy Transactions and Commercial Activities Simon Bergevin, who signed a Memorandum of Understanding as both parties work towards a final binding agreement.<\/p>\n
This electricity trade agreement is possible because Ontario and Quebec have complementary seasonal peaks in electricity demand. Ontario\u2019s peak demand occurs in the summer, driven mainly by air conditioning on hot days, and Quebec\u2019s peak demand occurs in the winter, driven mainly by electric heating on cold days. As a result, both provinces have excess capacity during the other province\u2019s electricity peak period that can be exchanged to reduce the need for new generation capacity.<\/p>\n
\u201cOur government\u2019s open-for-business approach has resulted in unprecedented investments and job creation, from electric vehicles and battery manufacturing to critical minerals and green steel,\u201d said Minister Smith. This agreement builds on our plan to Power Ontario\u2019s Growth and will make best use of existing electricity generation capacity in each of our provinces as Ontario continues to build out our reliable, affordable and clean grid to power the next major international investment, the new homes we are building, and industries as they grow and electrify.\u201d<\/p>\n
\u201cWith the increase in energy demand, we must adopt more energy efficiency and intelligence measures in order to better manage peak electricity consumption,\u201d said Minister Fitzgibbon. \u201cThe sharing agreement between Hydro-Qu\u00e9bec and the IESO is a fine example of collaboration, which allows Qu\u00e9bec and Ontario to meet the challenges of the energy transition in such a way as to decarbonize our economies.\u201d<\/p>\n
Under this preliminary deal, the IESO and Hydro-Qu\u00e9bec will carry out an annual capacity swap of 600 MW. The IESO will provide 600 MW to Hydro-Qu\u00e9bec in the winter and Hydro-Qu\u00e9bec will provide 600 MW to the IESO in the summer. Ontario will also have the opportunity to bank any amount of the 600 MW of summer capacity provided each year for use in any future summer period during the agreement, allowing the province to save capacity until it is required.<\/p>\n
The term of this agreement is up to 10 years. The deal will be a straight swap of capacity with no payments required by either party, protecting ratepayers in both provinces. Subject to the terms of the final agreement, the new deal could start this upcoming winter season.<\/p>\n
\u201cThe energy transition taking place underscores the importance of interprovincial collaboration,\u201d said Lesley Gallinger, President and CEO of the IESO. \u201cWe are leveraging the complementary nature of our electricity systems to provide further flexibility in ensuring reliability at no additional cost to ratepayers.\u201d<\/p>\n
\u201cTo support Qu\u00e9bec\u2019s decarbonization and growth, the volume of electricity available must be significantly increased,\u201d Michael Sabia, Hydro-Qu\u00e9bec President and CEO, said. \u201cThat requires increased production and reduced consumption, but also agreements with our neighbours like the one announced today. Since peak demand occurs at different times in Ontario and Qu\u00e9bec, we will work with our partners to better manage our network, for the benefit of all.\u201d<\/p>\n
The IESO and Hydro-Qu\u00e9bec have also agreed to collaborate in exploring opportunities to both strengthen and increase the number of transmission connections between Ontario and Quebec. The two parties agreed a priority would be meeting increasing loads in the Abitibi and Timmins region, as well as exploring the potential for new capacity between Montreal and Toronto.<\/p>\n","protected":false},"excerpt":{"rendered":"
The governments of Ontario and Quebec are supporting a new 600 megawatt (MW) trade agreement between Ontario\u2019s Independent Electricity System Operator (IESO) and Hydro-Qu\u00e9bec that will optimize the use of existing electricity generation capacity in both provinces. During the Energy and Mines Ministers\u2019 Conference on August 30th, 2023, Ontario Minister of Energy Todd Smith and …<\/p>\n","protected":false},"author":46,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-62289","post","type-post","status-publish","format-standard","hentry","category-community"],"publishpress_future_action":{"enabled":false,"date":"2026-04-27 08:43:39","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/62289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/comments?post=62289"}],"version-history":[{"count":1,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/62289\/revisions"}],"predecessor-version":[{"id":62290,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/posts\/62289\/revisions\/62290"}],"wp:attachment":[{"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/media?parent=62289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/categories?post=62289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wawa-news.com\/index.php\/wp-json\/wp\/v2\/tags?post=62289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}