Hydroelectricity Low-cost Green Energy for Your Industry February 2015
Presentation Hydro-Québec profile Environmentally friendly energy Long term security of supply Customized services Exceptionally low rates Concluding remarks 2
Hydro-Québec Profile Publicly owned joint-stock company with a single shareholder, the Québec government North merica s top-ranking electricity company in terms of energy sold and generating capacity World leader in renewable energy generation - 99 % hydropower Recognized for its expertise in high-voltage transmission 3
Key Figures 2013 4,14 million customers accounts in Québec 20 243 employees nnual sales : 205,5 TWh 27,7 % large industrial sector (56,9 TWh) vailable capacity : 45 294 MW 98 % of Hydro-Québec's own energy is hydropower 114 843 km of distribution lines 33 885 km of power lines Total assets of C$ 73 billion Long-term Credit Ratings (December 31, 2012) 4 Moody s a2 ; Standard & Poor s + ;
Regulatory gency HQ Distribution and HQ TransÉnergie are both regulated by the Régie de l'énergie The Régie must foster the conciliation of the: public interest, consumer protection and fair treatment of the grid operators The Régie has authority to : hold public hearings on distributor demands fix the rates and conditions for the distribution of electric power use incentives to improve the performance in 5 satisfying the consumer needs
Environmentally Friendly Energy First in the world in environmentally friendly hydroelectricity ccounts for close to 45% of all hydropower generated in Canada Long term price stability No pollution rights to pay 6
Hydroelectricity: One of the Best Generating Options in Terms of Greenhouse Gas Emissions Hydroelectric run off river Wind Hydroelectric with reservoir ** Photovoltaic solar power *** Thermal natural gas * Thermal diesel * 4 9 10 38 CO 2 Emissions (g/kwh) Life Cycle nalysis* 422 649 Thermal coal * 957 0 100 200 300 400 500 600 700 800 900 1000 * CO 2 produced by technologies used in north-eastern North merica, including facility construction and operation and any fuel supplies required. ** Estimated gross emissions from the Romaine complex. Net emissions will be lower. *** Emissions mainly associated with the manufacture of solar panels. 7 Hydro-Québec Sustainability report 2011
Generating Stations 45 294 MW (Owned & Firm Contractual Capacity ccess in Dec 2013) Hydroelectric stations : 40 792 MW James Bay complex : 16 527 MW Manic complex : 5 233 MW Churchill Falls : 5 428 MW Wind Turbines : 2 399 MW Thermal stations : 704 MW Other independent power producers : 1 146 MW 8
Hydroelectric development 2005-2020 Sarcelles 150 MW Eastmain-1 480 MW Eastmain-1-768 MW Rupert Diversion Toulnustouc 526 MW La Romaine 1 550 MW 8 TWh Péribonka 385 MW Chutes-llard and Rapides-des-Cœurs 138 MW Diversion Commissioned > 2005 9 Under construction
Long Term Security of Supply Québec is home of the second world s largest hydroelectric complex: 16 527 MW Highly reliable network Excellent power quality 10
Isolated and reinforced network 11
Hydro-Québec network 12
Highly Reliable Network Compliant with North merican Electric Reliability Council 13 interconnections with neighbouring systems secure supply through exchanges Major consumption centres are electrically looped 13
735 kv Montréal area loop The great Montreal area is looped with a 735 kv belt that feeds 5 main substations. This belt is directly linked to 5 lines that comes from the dams up north. 14
Customized Services First class customer services dvice on electro technology applications and energy efficiency programs Close cooperation on R&D: expertise on power quality and industrial applications HQ research institute IREQ (test beds up to 735 kv) HQ test center LTE Other options available to meet specific needs of supply Double feeding at delivery point available Technical support to enhance quality of power 15
Electric Transportation Innovation Road tests and interface with the grid Canada s largest test program completed in June 2013 in Boucherville (30 Mitsubishi i-mievs 740,000 km driven) Charging infrastructure The Electric Circuit: Canada s first network of public charging stations V2G / V2H power exchange experiments in real conditions - Tests underway since early 2014 Development of battery chemicals Hydro-Québec's research institute is world renowned Research partnerships with rkema (France), Department of Energy (U.S.), etc. Licences granted to BSF, Prayon, Mitsui, etc. 16
Innovation Technologies Esstalion Sony Hydro-Québec joint venture. "Ess" for energy storage system, "sta" for station and "ion" for lithium-ion. R&D for large scale energy storage system for grid operators. 17
Exceptionally Low Rates Stable rates not subject to the variability of oil and gas prices Patrimonial energy means stability of rates and long term security of supply nnual average rate increase for the last 10 years : 1.4% Very competitive industrial electricity rates 18
Electricity Cost Index in the world Industrial customer 2012 Québec 4,8 United Kingdom Sweden 10,2 12,4 Japan 16,4 Netherlands 10,3 Norway 5,6 Italy 20,3 France 10,2 United States 6,9 19 0 5 10 15 20 25 30 35 40 45 50 Source : http://www.mern.gouv.qc.ca/energie/statistiques/statistiques-energie-prix-electricite.jsp
Rates Stability in Real Terms HQ large power user industrial rate 600 550 500 450 400 350 300 250 200 Index rate L Index CPI Index natural gas Index oil 20 150 100 50 1996 2001 2006 2011 Statistiques Canada 2013-09-30
Electricity Cost Index in North merica Industrial customer 2 500 kw * 25kV - 1 170 MWh/mth LF 65% Hydro-Québec Seattle, W 100 97 Detroit, MI 142 Toronto, ON 181 Nashville, TN 147 Miami, FL 114 Chicago, IL 91 San Francisco, C 159 New York, NY Boston, M Calgary, B 217 210 230 21 0 50 100 150 200 250 300 350 400 *From rates before taxes Source : Hydro-Quebec, Comparison of Electricity Prices in Major North merican Cities ; Rates in Effect, pril 1st, 2013
Electricity Cost Index in North merica Industrial customer 5 000 kw * 25 kv - 3 060 MWh/mth LF 85% Hydro-Québec 100 Portland, OR Chicago, IL 112 124 Detroit, MI 166 Toronto, ON 223 Nashville, TN 175 Miami, FL 134 San Francisco, C 189 New York, NY Boston, M 238 254 Calgary, B 288 22 0 50 100 150 200 250 300 350 400 450 *From rates before taxes Source : Hydro-Quebec, Comparison of Electricity Prices in Major North merican Cities ; Rates in Effect, pril 1st, 2013
Electricity Cost Index in North merica Industrial customer 50 000 kw * 120 kv - 30 600 MWh/mth LF 85% Hydro-Québec 100 Portland, OR 132 Chicago, IL 105 Detroit, MI 171 Toronto, ON 234 Nashville, TN 156 Miami, FL 126 San Francisco, C 198 New York, NY Boston, M 251 269 Calgary, B 304 23 0 50 100 150 200 250 300 350 400 450 *From rates before taxes Source : Hydro-Quebec, Comparison of Electricity Prices in Major North merican Cities ; Rates in Effect, pril 1st, 2013
Concluding Remarks Security of supply Quality and reliability of supply Low cost energy for your industry Long term stability of rates Customized services for your particular needs Green & emissions free energy 24
Thank you 25