On August 28, 2013, the Québec government published a
draft regulation under An Act Respecting the Régie de
l'énergie setting out a framework for the
procurement of an initial 450-MW block of wind power of the
previously announced 800 MW of wind power to be procured.
In summary, the core provisions of the draft regulation deal
with the following:
Location of the Projects. The 450-MW block of wind
power to be procured itself consists of two blocks. The first block
of electricity, 300 MW, will be generated by projects located in
the Bas-Saint-Laurent and
Gaspésie-Îles-de-la-Madeleine regions. The second
block of 150 MW will be generated by projects located in the
province of Québec.
Timing of Deliveries. From this 450-MW block of wind
power, Hydro-Québec Distribution will obtain 225 MW of
capacity by December 1, 2017, and an additional 225 MW of capacity
by December 1, 2018.
Price. Hydro-Québec Distribution would pay for
electricity at a price not to exceed 9.5¢/kWh in 2014 dollars,
to be increased annually on the basis of changes in the CPI. This
price will also include complementary load balancing services which
will be provided by either Hydro-Québec Production or
another Québec electricity supplier.
Community Involvement. Local communities (which may
include a regional county municipality, a local municipality, a
First Nation or an inter-municipal board) will be required to hold
an interest representing more than 50% of the control in each of
Timing for Call for Tenders. Hydro-Québec
Distribution is required to issue a call for tenders for the 450-MW
block of wind power within 90 days of the publication of the
regulation in its final form.
It will be interesting to analyze the reactions of the industry
to the maximum electricity price established by the Québec
government, especially in light of recent positions in the media
against further development of wind power projects in
Québec. The Québec government had capped the price of
electricity in 2008 for its community wind power call for tenders.
While initially deciding to establish it at 9.5¢/kWh, the
maximum price of electricity was subsequently increased to
The requirement for local communities to hold a controlling
interest in the projects may pose challenges for private developers
in the structuring of their projects. In 2008, the Québec
government had imposed a similar requirement in connection with
First Nations projects.
The regulation only serves as a framework for a subsequent call
for tenders to be issued by Hydro-Québec Distribution. This
call for tenders should provide more details on the procurement of
electricity, including as it relates to the inclusion of load
balancing services in the maximum electricity price established by
Interested persons are invited to submit their comments on the
draft regulation to the Deputy Minister of Natural Resources within
the next 45 days, after which the regulation may be published by
the Québec government. As mentioned above,
Hydro-Québec Distribution will thereafter be required to
proceed with the call for tenders within 90 days from the
publication of the regulation in its final form.
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In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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