Hydro-Québec is taking an interest in Nova Scotia’s ambitions to become a major player in offshore wind power.
The behemoth Crown corporation will announce on Wednesday that it’s issuing a request for information (RFI) to gauge the state of play around would-be developments off the Atlantic province’s coast, and the viability of transmission from there to Quebec.
In an interview prior to the announcement, Hydro-Québec senior director of energy trading and commercial operations Simon Bergevin described it as a preliminary process aimed at better understanding whether importing offshore wind - with which Canada thus far has little experience, despite growth of the power source in Europe and Asia - could help meet Quebec’s growing electricity demand.
But while any involvement from Quebec would likely be a long-term play, it seemingly wants to move quickly in assessing its options. Mr. Bergevin said that the plan is to gather and analyze information from potential private-sector project proponents this summer, and consider next steps in the fall.
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It’s a development that could offer some much-needed momentum for the massive series of potential offshore investments, dubbed Wind West, that Nova Scotia Premier Tim Houston has presented as pivotal to the province’s economic future.
It’s also likely to be welcomed by Prime Minister Mark Carney, who is set to release a new national electricity strategy that is expected to heavily emphasize greater interprovincial transmission. While Ottawa has long wanted closer grid ties between provinces (some of which trade power much more with neighbouring U.S. states), that has recently taken on greater priority as Canada seeks to bolster its self-reliance amid frayed relations with the United States.
Mr. Bergevin embraced that aim in the interview. “Hydro-Québec has built new interties from north to south,” he said, “and now we need to see it more as an east-west interprovincial exchange of energy.”
Contributing to Quebec’s enthusiasm is the fact that, after its hydroelectric capacity long enabled surplus power that made it a net exporter, it now faces a crunch to both meet rising consumer power needs and continue leveraging abundant clean electricity as a draw to industry.
Hydro-Québec already began advancing greater connectivity with Atlantic Canada in a 2024 memorandum of understanding with Newfoundland and Labrador to continue purchasing power from Churchill Falls and potentially from new power plants, which is now somewhat in question following a change in government in St. John’s. But offshore imports from Nova Scotia could offer much greater additional supply in the long run.
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Despite Wednesday’s news, the path to that happening remains highly uncertain.
Nova Scotia’s offshore power potential, courtesy of high wind speeds and other favourable conditions, is not in question. A recent government-commissioned report by the engineering firm Stantec found that it could reach nine gigawatts of capacity in four offshore areas designated by the province - a projection that, while lower than claims made by Mr. Houston, would be more than three times the province’s total power-generation capacity currently.
Mr. Houston’s government has also moved faster than other Atlantic provinces - which have significant (if not equivalent) offshore potential as well - to develop an industry, including by introducing legislation setting a regulatory and royalties’ framework.
And even before Quebec’s signal of interest, Mr. Houston attempted to demonstrate the export market’s potential by signing an offshore wind memorandum of understanding with Massachusetts Governor Maura Healey, although her state also has offshore interests of its own.
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But the level of enthusiasm from offshore project developers won’t be known until Nova Scotia opens a call for bids, which it has promised sometime this year. And it’s not yet clear how much confidence in demand companies will take from interest from Quebec or Massachusetts that is for now exploratory.
At the same time, the lack of offshore development to date in Canada means those potential customers and other investors are seeking to resolve a long list of unknowns. Among the factors around which Hydro-Québec will be seeking more information, Mr. Bergevin said, are technology risks, costs, environmental impact and social acceptability.
That’s atop what might be the biggest imperative for Hydro-Québec: determining the feasibility of new transmission lines running from Nova Scotia. For that reason, Mr. Bergevin said, the utility will be engaging not just with offshore developers, but also with potential transmission-line proponents.
Even that level of enthusiasm from Quebec, however, is already being held up by Nova Scotia as progress toward its ambitions becoming more real.
“Early interest from large potential buyers helps reduce market uncertainty for developers and investors,” Mr. Houston said in a statement provided to The Globe and Mail.
“This, along with our signed agreement with Massachusetts to work toward Nova Scotia supplying the state with clean energy from our offshore wind, will further bolster developers’ confidence to participate in our call for bids and invest in transmission infrastructure – making Wind West a reality and the cornerstone of Nova Scotia’s burgeoning energy economy."