Hydro-Quebec, the Canadian renewable-energy powerhouse with major US export contracts, is stretching its C$200 billion ($143 billion) investment plan by six years, to 2041. Until then, the state-owned utility anticipates potentially being a net importer of electricity.
The utility launched an ambitious action plan in 2023 to build new generation capacity and improve transmission reliability by 2035. That plan aimed to meet demand amid an energy shortfall, a boom in the electric vehicle industry, and its power export commitments to the US. This year it opened two major US projects: the Blackstone Inc.-backed Champlain Hudson Power Express feeding New York City, and Avangrid Inc.'s New England Clean Energy Connect.
However, EV battery-manufacturing projects have collapsed and EV adoption is taking longer than expected. Hydro-Quebec says energy needs are lower than forecast. "The increase in demand is more gradual than expected," said spokesperson Cendrix Bouchard. A new 15-year supply plan expects capacity demand in Quebec to grow 30% to 52,000 megawatts by 2041, with more than half driven by transportation electrification. Meanwhile, low water levels in its reservoirs are forcing the utility to buy electricity on external markets, including US spot markets. Even if water levels recover by 2028, it may still import more than it exports until 2041. Additional capacity will come mainly from wind and hydroelectric power, and TC Energy Corp.'s Becancour gas plant will be upgraded.
In August, Hydro-Quebec signed a 50-year supply agreement worth nearly C$50 billion with Newfoundland and Labrador. In September, it sued three Massachusetts distributors, Eversource Energy, National Grid PLC and Unitil Corp., for withholding about $40 million in payments tied to the New England Clean Energy Connect contract. Hydro-Quebec cited a force majeure clause over delivery interruptions during extreme winter conditions in January and February 2026. The distributors have countersued, claiming the right to hold back payments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing