Canada: The Future Energy Policy Of Québec: Promoting Energy Efficiency Over Security Of Supply?

On July 4, 2013, the Minister of Natural Resources and Wildlife of the Parti Québécois government in office at the time, Ms. Martine Ouellet, gave the following mandate to the Commission sur les enjeux énergétiques (hereinafter, the Commission), co-chaired by Messrs. Roger Lanoue and Normand Mousseau:

  1. Describe the current profile of the energy sector in Québec;
  2. Analyze the issues pertaining thereto;
  3. Conduct a public consultation in all regions of Québec; and
  4. Produce a report including recommendations for the next energy strategy of Québec expected in 2015.

After visiting 15 regions of Québec, hearing more than 800 people and studying 460 briefs, the Commission produced a report titled "Maîtriser notre avenir énergétique" ("Controlling Our Energy Future", available in French only) (the Report), which was released by the Minister of Natural Resources and Wildlife on February 24, 2014.

The Commission mainly recommends that energy control and management be the fundamental principle of the next energy policy of Québec. The Report thus differs from the main objective of the last energy policy of Québec (2006-2015), which was to ensure security of energy supplies for the province.

We summarize below the principal recommendations of the Commission in respect of the main energy sources in Québec. The Report describes numerous additional recommendations with respect to energy management, including in respect of land use planning, efficiency of buildings, transports (especially in relation to the infrastructures necessary for the circulation of electric vehicles and the electrification of public and individual transport) and the mandate, composition and procedural obligations of the Régie de l'énergie (Québec's regulatory energy board).

It will be interesting to review the next energy policy of Québec to ascertain whether it will implement the Report's recommendations. This review will be particularly interesting as the Liberal Party of Québec recently replaced the Parti Québécois as governing party for the province and a new Minister of Energy and Natural Resources is now in office, Mr. Pierre Arcand.

Renewable Bioenergy and Heat Recovery

  • Create a substantial residual forest biomass sector in all forest areas of Québec;
  • Stimulate the progressive development of the biofuels industry by imposing a minimum level of biofuels in oil and diesel;
  • Impose a regulatory obligation requiring industries to recover waste heat rejected by industrial or chemical processes and make it available to potential users. The costs of recovery, transport and use are borne by the users;
  • Impose mandatory filings and registrations in a register of the quantity and quality of the waste heat generated by various industries.

Natural Gas

  • Encourage the replacement of heavy fuel oil and coal by natural gas in all applications where the use of electricity and biomass is not competitive;
  • Support the construction of a gas pipeline connecting the Côte-Nord region to Gaz Métro's network;
  • Make the necessary representations to the authority responsible for the approval of the TransCanada pipeline project to the effect that if the project is allowed, it should include the cost of building the replacement gas pipeline required to maintain the security of supply of Québec.

Oil and Other Hydrocarbons in Québec

  • Set a goal of reducing hydrocarbon consumption by 75% by 2050 with an intermediate target of 20% reduction in the consumption of petroleum products by 2025;
  • Maintain the current refining capacity in the province of Québec;
  • Stricter provincial regulation of oil transport by rail while taking into account the federal jurisdiction;
  • Support the reversal of the Enbridge pipeline to the extent that it provides financial compensation and guarantees of safety, information and training of front line staff, with an unlimited liability insurance;
  • Adopt an Hydrocarbons Act with emphasis on the principles of sustainable development and the setting of clear mechanisms for the allocation of licences of operation and exploration, environmental management and income distribution;
  • Consider the creation of a Crown corporation to ensure a majority and public participation in the profits generated by the exploitation of fossil fuels in its territory (in addition to taxes and charges);
  • Adopt a policy for the allocation of exploration or operation licences using an auction mechanism on which the government would retain control (Ø free mining).


While electricity demand is stable, the Commission reminds us that Québec has produced an annual 30 TWh of excess electricity in 2012. The Commission further submits that Hydro-Québec must pay energy from new sources of production since 2008 between ¢6/kWh and ¢12/kWh and then sell it for about ¢3/kWh in the US northeast market. These factors explain the following recommendations of the Report in relation to electricity:

  • Analyze without delay the suspension of investments in the Romaine-3 and Romaine-4 hydroelectric development;
  • Stop or suspend supply contracts in wind, cogeneration and small hydropower for the facilities that are not yet built;
  • Ensure that any new supply procured by Hydro-Québec Production or Hydro-Québec Distribution is contracted based on the average price of energy exports in off-peak period of the previous year (this recommendation targets, among other, the block of 800 MW of wind announced in spring 2013 and the possible renewal of APR91 contracts);
  • Negotiate the terms of supply of electricity to aluminum smelters in Québec (already installed), taking into account the capacity of Hydro-Québec, Québec's public finances, the economic impacts and the global energy landscape;
  • Offer to energy-intensive industries interested in locating in Québec a consumer price discount on the normal price of electricity for a short term period (three to eight years).

In summary, according to the Commission, Québec's energy future will focus on a better use of its existing resources, rather than developing new ones. The exploration and exploitation of oil and gas in Québec should be areas to watch, especially with the advent of a new possible statute pertaining thereto. The Commission also questions the purchase by Hydro-Québec of new electricity supplies from wind power and hydropower. We will keep you informed of future developments in this area.

To view original article please click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.