Montréal, September 29, 2023
Unfavorable weather conditions cause Hydro-Québec to lower exports
In its newly released quarterly report, Québec’s Ministère des Finances attributes part of the anticipated drop in government income to Hydro-Québec. For the period covering April 2023 to March 2024, revenue from Hydro-Québec is anticipated to be $650 million below forecast due to reduced electricity exports.
Sparse snow cover in the late winter, lower-than-normal spring floodwaters and modest precipitation last summer in northern Québec reduced the water supply to the reservoirs, causing Hydro-Québec to lower its short-term market exports as a preventative measure to ensure optimal resource management.
This decision has no impact on Québec’s energy supply or its long-term commitments with neighboring markets. In terms of water supply, Hydro-Québec has reservoirs that store water over several years, which provides a great deal of flexibility and secure the long-term supply. The fact that these reservoirs are scattered across the province’s immense land area also contributes to supply security.
Some regions experience drier periods, as water is a cyclic resource. The longer-term forecasts that take climate change into account suggest a 5% to 10% increase in precipitation in northern Québec, which is where our largest reservoirs are located.