'Without exports, our profits are in trouble': Hydro-Quebec plugs into U.S. markets for growth - energy storage system price

MONTREAL —
Eric Martel takes over as Hydro.
Mid-term executive director of Quebec
2015 when the company's troubles seem obvious to some casual observers.
Internal surveys show that employee engagement is at the lowest level in years, public opinion in the customer service department is declining, power demand is expected to flatten, and future profitability is threatened, this will force electricity prices to rise
Things consumers will never like.
Martel recalled in an extensive interview: "I said to the people here, 'We will face the challenge of profitability and we will face the huge challenge of maintaining interest rates'
Including water during the interview
Montreal headquarters, Quebec.
The new head of Canada's largest utility company, which generated more than 37,000 MW of electricity from 28 reservoirs and 63 power stations, quickly developed a plan to revive the bloated bureaucratic culture, it is vital that through a firm commitment to double revenue, profits will be raised over the next 15 years, up to $27 billion by 2030.
These ambitions depend on whether Crown can use its vast hydropower capacity to build a new power corridor in the northeast of the United States. S. —
A region with huge demand for new sources of emissions
Free electricity to meet strict climate targets. But Hydro-
Expansion in Quebec is not easy.
It has been strongly resisted by the United States. S.
Interest groups, First Nations and some municipalities say their proposed transmission lines will be disastrous for eco-sensitive areas.
In addition, a large amount of cheap natural gas supply from within the United States. S.
As well as the decline in renewable energy costs such as wind energy and solar energy, it is possible to lead to large-scale energy shortages.
Large scale hydropower imports that take a long time
This weakens Martel's ability to achieve the company's ambitious goals.
"If there is no export, our profits will be in trouble," he said . "
The company has proposed three separate 1,000 MW projects to deliver power to Massachusetts, USA. S.
Across Vermont, New Hampshire and Maine.
It also submitted its fourth proposal to New York State, which may include the Champlain Hudson Power Express transmission line, which will deliver about 1,000 MW to New York City and cut under Lake Champlain in Vermont. Hydro-
Quebec's plan to provide 9 megawatts of electricity to Massachusetts now starts at $950.
Millions of New England Clean Energy connectivity projects have been rejected by state regulators after its North Pass Transmission line proposal.
A coalition of community associations and environmental groups called the transmission line "unnecessary gambling that New Hampshire cannot afford ", all eco-sensitive waterways and other areas that it is about to cross are cited.
In particular, a coalition of voices opposed the project to cross the national forest of Baishan. Hydro-
Quebec's partner on the project, Eversource Energy, has promised to bury much of the project underground, exaggerating the projected cost of $1 in an attempt to appease concerns. 7-
Billion transmission lines
New projects jointly developed with the United StatesS. -
Power company based in central Maine
It will send 1,200 MW to the Massachusetts market through Maine.
The bid is currently being evaluated by regulators.
"This will happen," Martel said of the clean energy connection . ".
"Everything is moving in the right direction. ”Hydro-
Quebec's approach to proposing three separate projects to New England is unusual, but reflects a broader boycott of large projects in the region
Scale of any type of energy infrastructure.
Spectrum energy, for example.
Now owned by Calgary
Based in Enbridge
Last summer from 3-
After severe environmental criticism, the region's billion gas pipeline project.
But the hydro market in New York and New England is still profitable.
Quebec is one of the lowest-cost cities in Canada.
In 2017, the company's exports generated a profit of $0. 78 billion, or 27% of net income, although it accounted for only sales. Pierre-
Olivier Pino, professor at HEC montral, said the company could generate electricity from the reservoir for about two cents per kilowatt hour.
By contrast, it is estimated that Ontario will spend at least 8 cents per kilowatt hour to extend the life of two nuclear facilities.
Buyers in New England are currently paying 4 to 6 cents per kilowatt hour.
At the same time, demand for emissions
As countries seek to achieve the strict climate goals set by the United Nations, demand for free electricity generation is high. Some U. S.
Countries are developing plans to phase out nuclear and coal facilities.
Two reactors including 2,000.
MW India nuclear facility in New York
Cleaner alternatives are needed to replace energy supply.
"Carbon restrictions in northeast AmericaS.
It will increase the value of water and electricity in Canada, "Pineau said.
Martel said the clean energy connection will be a key project to help some new INGL Lanzhou achieve its goals, including reducing emissions from 1990 levels in the next two years.
"This transmission line alone will help them achieve half of their goals," he said . ".
In the long run, New England and New York are aiming to reduce about emissions from levels in 1990.
This is good news for hydro.
Quebec, because its expansion plan is in Quebec, is more broadly set at a time when Canada's demand for electricity is expected to remain stable and may even gradually decrease.
In the first half of the past decade, with the extensive sales of assets, during this period, hydropower
Quebec, which sells power generation facilities and transmission facilities in China, Peru, Colombia, Panama and elsewhere, has re-focused its efforts on developing assets closer to home.
This focus has created a miracle for its domestic portfolio, adding about 5,000 MW of capacity since about 2005. But —
Just like the usual situation for large utility companies --
Rapid expansion outweighed domestic demand and domestic demand has declined due to higher energy efficiency, lower population growth and the closure of several high-tech enterprisesenergy-
Intensive facilities such as pulp and paper mills.
"We have stabilized," Martel said . "
"It put a lot of pressure on our finances. ”Hydro-
Quebec's plan to increase exports in response to the tepid domestic demand outlook reflects a broader push from Manitoba Hydro to distribute more clean energy to North America by smaller wind power plants in Newfoundland and OntarioS.
Electricity sales to the United States in CanadaS.
Growing to 73 TWh worth $2.
9 billion on 2016, 57 megawatts (TWh) on 2012, according to the National Energy Administration.
Manitoba Hydro says its revenue comes from the United States. S.
Exports between 2007 and 2016.
The company is now looking to extend its contract as new capacity goes live.
In Newfoundland, some analysts say the province's energy company, the troubled Masrat Falls hydropower station owned by the province's energy company, may eventually export emissions-
Free electricity to the United StatesS.
Though 1,600-
The MW project is still far behind schedule and out of budget.
This province 2,250-
The MW Island project, which can power New England, faces similar resistance.
Of course, Canada already has a considerable water footprint and a lot of room for development.
China now has about 73,000 megawatts of water and electricity, second only to China around the world. Experts say this could double to about 160,000 MW if new large hydropower is invested
Scale development.
But there is still a question of whether the United StatesS.
It will accept the flood of water and electricity in Canada.
Opponents of Hydropower
Transmission lines in Quebec often believe that the development of wind and solar energy, coupled with more efficient energy storage technologies, can replace coal and nuclear energy.
"We just want to use energy storage to step on metal," said Emily Norton, director of the Massachusetts branch of the Sierra Club against Hydro.
Northern Quebec channel development project.
However, energy economists generally believe that wind and solar power generation need a reliable "support" source to supplement at a time when production is low.
As far as Martel is concerned, he likes to call the company's reservoir a "natural battery ".
North American power reliability also emphasizes the reliability of hydropower.
A 2015 report warned that widespread shifts in wind and solar energy could put pressure on the United States. S. grid.
Unlike nuclear power, hydro is unique in its ability to shut down when there is low demand or no demand.
"As the penetration rate of wind and solar energy as a resource is getting higher and higher, you need flexible resources that can support them," said Ed wojcankski, interim chairman of the Canadian Hydropower Association . ".
"This is a well.
Known facts about the power industry
No dispute.
But water and electricity will also face competition for natural gas.
Despite the large emissions of greenhouse gases, fuel has been a very affordable source of energy since the United States. S.
The energy revolution began 15 years ago.
Over the past decade, new production technologies have opened up the formation of a large amount of oil. S.
This in turn opens up huge new natural gas resources, especially in the yutica and Marcellus groups in the northeast.
The new gas supply has lowered the price of natural gas and led to some new gas supply
A thermal power plant to be commissioned.
According to New York Independent System Operators, at least three new gas facilities totaling about 1,800 MW will be available in New Jersey and New York in the next few years.
Martel insists emissions
Demand for free energy in the United States will remain high. S.
Although the administration of Donald Trump has threatened to pull the country away from the United Nations environmental commitments.
Many environmental groups have said the country is far behind its single plan to clean the grid-
The biggest source of emissions, it is not clear if this will happen or when it will happen.
Similarly, the ability of Martel to achieve its stated goals is not clear.
Despite the highest release
Export volume in 2017
Quebec's profit fell slightly to $2.
$2 compared to 85 billion.
2016 86 billion.
Some criticized Martel for focusing on revenue generation rather than other indicators.
"This is a bit of a stupid goal," said Pineau of HEC . ".
"When he arrives, I think he wants to have an ambitious development plan, but the reality is always better.
He may double his income, and it is difficult to double his profits.
However, Martel believes that the key to meeting the demand for water and electricity is
The goal of Quebec is to get the company out of the stubborn old companyfashioned ways.
He first posed a friendlier, more transparent face on the company, spoke to the public more often, and published an internal customer satisfaction survey --
Something close to the chest.
According to the company survey, he has increased his investment in the customer service department, which appears to have increased the overall satisfaction rate of Québec people since 2015.
Martel has also opened up new channels of communication with employees, and now holds video meetings with about 1,000 managers and deputy managers every month
The president and directors are scattered throughout the province to keep abreast of operations.
"If I could do it with 20,000 people, I would," he said . ".
Martel admits that it may take a few more years to readjust the utility.
But he said new export relations with the United StatesS.
There needs to be a new outlook for the market in Ontario and elsewhere.
"We used to be a more conservative company and would be happy to provide electricity under the status quo," he said . ".
"Now we have a stronger spirit of entrepreneurs.