ARTICLE
20 January 2014

Quebec: Call For Tenders For Wind Farm Projects

BC
Blake, Cassels & Graydon LLP

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Blake, Cassels & Graydon LLP (Blakes) is one of Canada's top business law firms, serving a diverse national and international client base. Our integrated office network provides clients with access to the Firm's full spectrum of capabilities in virtually every area of business law.
2013 was a record year in Quebec where a total of eight wind farm projects totalling approximately 1,050 megawatts have been commissioned, including the Viger-Denonville wind farm project, the first community wind farm project in Quebec from the call for tenders A/O 2009-02.
Canada Energy and Natural Resources
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2013 was a record year in Quebec where a total of eight wind farm projects totalling approximately 1,050 megawatts have been commissioned, including the Viger-Denonville wind farm project, the first community wind farm project in Quebec from the call for tenders A/O 2009-02.

This trend should continue in 2014 with eight additional wind farm projects, including four community wind farm projects, to be commissioned for a total of approximately 436 MW.

HYDRO-QUÉBEC DISTRIBUTION SEEKING TENDERS FOR 450 MW OF WIND-GENERATED ELECTRICITY

As a reminder, Hydro-Québec Distribution (HQD) issued a call for tenders A/O 2013-01 for a total of 450 MW of wind-generated electricity on December 18, 2013 (A/O 2013-01). Parties interested to submit a bid pursuant to A/O 2013-01 have to respect various milestones, including the submission of the call for tenders registration form no later than April 18, 2014 and the submission of the bid no later than September 3, 2014.

The 450 MW available under A/O 2013-01 will be separated into two geographical regions: 300 MW for wind farm projects located in the Bas-Saint-Laurent or Gaspésie-Îles-de-la-Madeleine regions and 150 MW for wind farm projects located across Quebec. The A/O 2013-01 does not impose additional sublimits to the size of wind farm projects.

Pursuant to A/O 2013-01, 100 MW shall be commissioned by December 1, 2016 and the remaining 350 MW shall be commissioned by December 1, 2017.

OWNERSHIP OF THE COMMUNITY WIND FARM PROJECTS

According to the terms of A/O 2013-01, the local environment shall hold a participation representing 50 per cent or more of any wind farm project. "Local environment" includes the following constituents: a regional county municipality, a local municipality, a native community, an inter-municipal board, and a cooperative where the majority of members are domiciled in the administrative region where the wind farm project is located.

REGIONAL CONTENT AND PRICE OF ELECTRICITY

A/O 2013-01 provides conditions regarding the regional content of any wind farm project and other conditions, including the maximum price for the electricity offered by any bidder, the whole in accordance with the provisions set out in A/O 2013-01.

TERM OF POWER PURCHASE AGREEMENT

Successful bidders will have to enter into a power purchase agreement with HQD, a form of which is annexed to A/O 2013-01 (Power Purchase Agreement). The Power Purchase Agreement shall be for a term of 20 or 25 years starting from the commencement of deliveries to HQD

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ARTICLE
20 January 2014

Quebec: Call For Tenders For Wind Farm Projects

Canada Energy and Natural Resources

Contributor

Blake, Cassels & Graydon LLP (Blakes) is one of Canada's top business law firms, serving a diverse national and international client base. Our integrated office network provides clients with access to the Firm's full spectrum of capabilities in virtually every area of business law.
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