QUEBEC CONFRONTS ENERGY CHALLENGE
Province faces many challenges
Roving commission seeks input on a new energy policy that will have to juggle the province’s energy needs with plans to reduce greenhouse-gas emissions.
New pipelines carrying western Canadian oil. Abundant hydroelectricity production. Petroleum reserves in the Gulf of St. Lawrence. An increasing number of vehicles on the roads. A climatechange plan that promises to drastically cut greenhouse gas emissions.
Those are just some of the issues the Quebec government is juggling as it prepares to draw up a new energy policy for the province.
A provincial commission studying Quebec’s energy future is travelling the province, and heard conflicting recommendations as it began two days of public hearings in Montreal Wednesday.
Montreal’s Board of Trade says the new energy policy must recognize the fact that hydrocarbons — such as oil and gas — will continue to play an important role in meeting Quebec’s energy needs.
It recommended Quebec approve the proposed Enbridge Line 9B pipeline reversal project, proceed with petroleum exploration in Quebec, and go ahead with shale-gas development if an environmental review currently underway shows it can be done safely.
Energy-efficiency efforts, which could produce a surplus of energy for export, are being stymied by Quebec’s low electricity prices, president Michel Leblanc told the commission. If the government were to raise electricity rates, which could encourage energy conservation, the board of trade recommends it be done gradually with mitigation plans for low-income households, for example.
But Steven Guilbeault of the environmental group Équiterre told the commission that any new energy policy must factor in climate change. Meeting Quebec’s target of reducing emissions by 25 per cent compared to 1990 levels by 2020 will mean shifting away from using petroleum products, he said.
Gaz Métro president Sophie Brochu argued for an increased role for natural gas as Quebec reduces its used of fossil fuels. Electricity isn’t the only alternative to oil, she said, adding that while natural gas is a fossil fuel, it is cleaner than other forms, such as diesel.
Among other groups making presentations this week are the Société de Transport de Montréal, the Association industrielle de l’Est de Montréal, the David Suzuki Foundation and the Conseil patronal de l’environnement du Québec.
The two-person commission is to present recommendations to the government, which is expected to adopt a new energy policy in 2014.
A report prepared for the consultations says Quebec faces several energy-related challenges: Rising oil prices; A decrease in natural gas prices that has led to a drop in electricity prices, which is a problem for an electricity exporter like Quebec;
Increased petroleum demand because of the rising number of cars on the province’s streets and highways;
How to proceed with electrifying transportation in the province;
Whether to go ahead with exploration and development of oil and gas reserves in Quebec.
Meeting Quebec’s greenhouse-gas emissions targets will require major changes to the way Quebecers use energy, particularly for transportation, the report said.
As things stand now, Quebec will not be able to meet the 25-per-cent reduction target by 2020, the report said.
Quebec’s energy consumption is expected to grow in the coming years, in all sectors — residential, commercial, industrial and transportation, the report said.
Oil will play a major role, even though the Parti Québécois has promised to reduce the amount of petroleum products used in the province.
While nearly half of the province’s energy needs are met by renewable energy — hydroelectricity — Quebecers are among the heaviest users of petroleum products in the world. Nearly threequarters of petroleum used in Quebec is for transportation, according to the Natural Resources Department. Quebec imports all its fossil fuels — petroleum, natural gas and coal. With rising oil prices, Quebec has had to spend more on oil — going from $8.5 billion in 2008 to $13.7 billion in 2012, the report said.
Energy demand from businesses, institutions and transportation went from 40 per cent of Quebec’s energy demand in 1990 to 48 per cent in 2009. Since those sectors rely more on fossil fuels, that has increased demand for fossil fuels as well.
Oneof the ways Quebec can try to meet its 2020 climate goal is by improving energy efficiency and increasing the use of clean energy, the report said.
Money spent on energy efficiency programs are less expensive than building new energy facilities, the report said. Improved energy efficiency creates quality jobs and enhances productivity and competitiveness, the report said.
The commission is holding a second day of hearings in Montreal Thursday, and will return on Oct. 11 for one more day of public hearings.