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    Two Canadian utilities in dual energy pact

Summary

Adding electric heating to gas-heated buildings could avoid 540,000 mt of emissions.

by: Dale Lunan

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Two Canadian utilities in dual energy pact

A pair of Quebec utilities said July 14 they would partner to expand dual energy (renewable electricity and natural gas) systems in participating residential, commercial and institutional buildings throughout the province.

Hydro-Quebec, the provincially-owned power utility, and Energir, Quebec’s largest gas utility, majority-owned by the province’s largest pension fund manager, said they would collaborate to increase the electrification of buildings with dual energy systems that could reduce natural gas consumption by 70% and offset 540,000 mt of CO2-equivalent emissions by 2030.

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Heating buildings solely with electricity puts significant pressure on Hydro-Quebec’s grid during peak winter demand periods, the utilities said. Dual energy heating systems maximise the use of electricity to heat buildings while limiting the impact on the grid during peak demand periods.

“This partnership with Hydro-Quebec perfectly symbolises the concept of the right energy in the right place, at the right time and at the best possible price,” Energir executive vice president Stephanie Trudeau said. “The complementarity with electricity reflects Energir’s new vision, Focus on 2030, which allows us to be a key player in dealing with economic, social and climate-related issues for our customers and Quebec and to increase our contribution to Quebec’s GHG reduction efforts.”

The Quebec government was a key driver behind the wider implementation of dual energy systems, setting aside C$125mn (US$100.3mn) in its 2030 Plan for a Green Economy, which targets a 37.5% reduction in greenhouse emissions by 2030, compared against 1990 emission levels.

Adopting dual energy systems, the utilities said, will result in savings of about C$1.5bn by 2030 compared to fully electrifying markets currently fuelled by natural gas, which would have led to significant rate increases for both gas and power customers.

“One of our main collective challenges is to reduce greenhouse gas emissions at the lowest possible cost,” Hydro-Quebec executive vice president Eric Filion said. “This dual-energy partnership is an ideal way of taking on this challenge.”

The utilities are expected to file soon a proposed rate structure for the programme with provincial regulator Regie de l’energie.