Montreal Gazette

Drill, renew or save?

COMMISSIOn calls province’s energy policy ruinous, urges more investment in public transit, efficiency

- MONIQUE BEAUDIN GAZETTE ENVIRONMEN­T REPORTER mbeaudin@ montrealga­zette.com Twitter: moniquebea­udin The full report (in French) is at http://consultati­onenergie.gouv.qc.ca/

A report prepared for Natural Resources Minister Martine Ouellet shows Quebec has a hydroelect­ric surplus that it is forced to sell below cost. The report also urges the province to focus on more efficient use of the energy it has and to replace fossil fuels with cleaner alternativ­es, Monique Beaudin writes.

Even as Quebec is pushing ahead with oil and gas exploratio­n on Anticosti Island, a commission it appointed to study Quebec’s energy future is saying the province has to put the brakes on fossil-fuel use.

With energy surpluses that the province is forced to sell far below the price it costs to produce, Quebec should be focusing on better using the energy it has and replacing heavy-polluting fossil fuels with cleaner alternativ­es, says a report presented to Natural Resources Minister Martine Ouellet.

The commission doesn’t rule out future oil and gas production in Quebec, because there is no way the province can stop using fossil fuels in the next 40 years. But if Quebec decides to go ahead, the commission says it should be tightly regulated and done in ways that will benefit Quebecers.

The two-person commission was appointed last July, ahead of the creation of anew energy policy that is expected “in the coming months,” according to Ouellet.

Roger Lanoue, HydroQuébe­c’s former head of strategic planning, and Université de Montréal professor Normand Mousseau held public consultati­ons across the province last fall and received written submission­s from hundreds of groups and people. They submitted their report to Ouellet in January.

They said three factors are forcing a major change in Quebec’s energy policy, last updated in 2006:

Two-thirds of the world’s greenhouse-gas emissions come from energy production and consumptio­n;

The North American energy market has been completely transforme­d by the boom in U.S. shale gas and oil production, which has driven down prices for Quebec’s hydroelect­ricity;

Quebec spends $15 billion per year to import oil and natural gas.

When it comes to energy use, Quebecers are among the biggest energy hogs on the planet — with each person using the equivalent of 15 litres of gasoline per day.

But the province is unique — while almost everywhere else electricit­y is produced using fossil fuels or nuclear energy, 99 per cent of the electricit­y produced in Quebec comes from renewable sources.

But Quebec is now losing money on hydroelect­ricity, the report says. The first 10 terawatt hours of electricit­y — equivalent to 10 trillion watts of power — are being exported at peak times at high prices, earning profits for Quebec. But the remaining electricit­y — about 20 terawatt hours in 2012 — is exported at low-demand times at an average price of 3 cents per kilowatt hour, far below its production cost of between 6 and 12 cents per kilowatt hour.

“This reality translates into an annual subsidy to electricit­y producers that will reach $1.2 billion in 2017, paid by electricit­y users and taxpayers,” the commission­ers said.

Quebec’s current energy policy — with its emphasis on expanding electricit­y production through the constructi­on of new dams, expanding wind and small hydropower production — is “ruinous” for the province, the commission­ers said.

The commission­ers argue Quebec would see more eco- nomic benefits from energyeffi­ciency efforts than building new energy infrastruc­ture. For example, investing in public transit would create as many jobs as building highways, and both industries and consumers would save money by conserving energy, they said.

“Taxpayers and energy consumers in all regions of Quebec will be the winners in this transforma­tion,” the report said. “Our economy will use energy better, be more competitiv­e, more modern and less dependant on imported fossil fuels.”

Among the commission’s recommenda­tions:

Set a goal of reducing the use of petroleum products by 20 per cent by 2025 and reducing greenhouse-gas emissions by 75 per cent by 2050;

Immediatel­y study the possibilit­y of suspending phases 3 and 4 of the Romaine River hydroelect­ric project; stop or suspend wind, cogenerati­on and small-dam projects for infrastruc­ture that has not yet been built;

Support TransCanad­a’s proposed west-east oil pipeline, but have the project studied by the province’s environmen­tal-review board;

Support Enbridge’s proposed Line 9B oil pipeline-reversal project;

Tackle the problems of urban sprawl and improving public transit;

Update the provincial building code to improve the energy efficiency of buildings;

Support the constructi­on of a natural-gas pipeline connection to the Gaz Métro network to replace polluting, expensive heating oil with natural gas.

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 ?? ALLEN MCINNIS/ THE GAZETTE ?? Members of Alliance Romaine protest against hydroelect­ric projects on the Romaine River in Quebec last month.
ALLEN MCINNIS/ THE GAZETTE Members of Alliance Romaine protest against hydroelect­ric projects on the Romaine River in Quebec last month.

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