Hydro-Québec and Evolugen, the Canadian operating business of Brookfield Renewable, entered into a 40-year escalating electricity purchase agreement under which Hydro-Québec will buy the output of the 263 MW Lièvre hydroelectric portfolio in Québec.
Given the ongoing energy transition, it is expected that demand for clean, renewable baseload electricity generation will increase sharply in the coming years, Hydro-Quebec said in a press release. The company is implementing several strategies to address this demand, such as contracting the capacity of these four generating stations along the Lièvre River in Outaouais. The facilities will contribute about 1.5 TWh annually.
The generating assets will continue to be operated by Evolugen.
The agreement involves integrating the Lièvre generating fleet into Hydro-Québec’s generation planning. It also includes priority access rights associated with the U.S. market.
“With this strategic agreement, we are adding capacity and renewable energy to our supply in a context of increasing demand in both Québec and neighboring markets,” said Pierre Despars, Vice President-corporate strategy and business development at Hydro-Québec. He said the agreement will be particularly useful for the utility during winter peaks.
The four hydro plants are 40 MW Dufferin, 109 MW High Falls, 105 MW Masson and 9 MW Rapides-des-Cedres. Deliveries of output from the facilities began at the end of December.
“This agreement offers a sustainable and Québec-based solution to meet Hydro-Québec’s growing renewable energy demand” said Josée Guibord, chief executive officer of Evolugen.
Hydro-Québec generates, transmits and distributes electricity. It is Canada’s largest electricity producer and one of the world’s largest hydroelectric power producers. Its sole shareholder is the Québec government.
In Canada, Evolugen owns and operates 61 renewable power facilities, including 33 hydroelectric generating stations, four wind farms and 24 solar farms, for a total installed capacity of 1,912 MW.
Evolugen is owned by Brookfield Renewable Partners L.P., which operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia and totals about 21,000 MW of installed capacity and an approximately 56,000-MW development pipeline. Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a global alternative asset manager with about $650 billion of assets under management.