April 19, 2024

Along with his motion plan “In direction of a decarbonized and affluent Quebec,” new Hydro-Québec CEO Michael Sabia goals to speculate $155 billion to $185 billion by 2035, an annual common of $12 billion to $16 billion.

Within the context of those huge investments that Hydro-Québec is planning to considerably improve its electrical energy manufacturing, a monetary partnership with the Caisse de dépôt et Placement appears advantageous to me.

We might kill two birds with one stone: whereas Hydro-Québec modernizes and expands its community, the Caisse funds it, both as a companion or as a easy lender.

Hydro might thus finance itself cheaply and on the identical time allow the Caisse to earn a living with this financing. As a substitute of paying billions in curiosity charges to overseas buyers, Hydro would put them into our nest egg.

  • Hearken to the financial system half with Michel Girard above QUB radio :

The debt will triple

Hydro-Québec’s long-term debt at present stands at almost $52 billion. The huge future investments that new CEO Michael Sabia desires to make carry the danger of tripling Hydro’s debt.

Sabia’s new funding plan is big. As proof, it must be famous that the sum of money (as much as $185 billion) to be invested on this motion plan exceeds the overall quantity of investments that the Authorities of Quebec will make over the subsequent 10 years beneath the Quebec Infrastructure Plan 2023 -2033 plans to do. We’re speaking a couple of complete funding of $150 billion over 10 years throughout all sectors beneath the federal government’s purview: street networks, colleges, hospitals, public transport, parks, water retention methods, lodging facilities, and many others.

FOR MORE POWER

With these investments of 155 to 185 billion by 2035, hydropower will be capable of add 60 TWh or between 8000 and 9000 MW of further energy. This corresponds to the present efficiency of the state-owned firm’s three largest hydropower initiatives, specifically LG-2, Manic-5 and the Romaine advanced.

In brief, listed here are the investments Hydro-Québec’s new CEO desires to make over the subsequent 11 years:

  • $45 billion to $50 billion in labor and tools purchases aimed toward guaranteeing the sustainability of the electrical distribution community (compound poles, conductor safety, buried energy strains, and many others.);
  • $30 billion in “personal and public” investments to increase new wind capability;
  • $35 billion to $45 billion to construct new hydroelectric energy vegetation and enhance the efficiency of present vegetation;
  • $45 billion to $50 billion for brand new electrical energy transmission infrastructure between new manufacturing services and factors of consumption;
  • Billion {dollars} to undertake vitality environment friendly renovations and improve incentives that may cowl as much as 50% of the price of buying vitality environment friendly tools (warmth pumps, sensible thermostats, water heater controls).

Photograph Pierre Paul Poulin

Hydro’s enviable place

Nations are at present rising investments to decarbonize their economies with clear vitality. In 2022, $1,600 billion can be invested within the vitality transition. World funding is predicted to achieve $40 trillion by 2030.

We in Quebec are in an enviable place and have a superb lead on this world race for clear vitality. And on the lowest charges in North America.

Investing 155 to 185 billion in further electrical energy manufacturing by 2035 is definitely some huge cash on a Quebec scale.

But when we transfer ahead, Hydro’s massive boss believes this can allow Quebec to adequately meet the long-term vitality wants of properties and companies whereas having the ability to profitably export the excess we produce.

IMPORTANT ENERGY INVESTOR

If Hydro-Québec wants monetary companions to implement its motion plan, we’d be loopy to not rely on the Caisse.

Not solely does she have loads of cash along with her $424 billion web value entrusted to her care, however you must also know that the Caisse has made important investments in energy technology infrastructure world wide.

EXAMPLES?

  • La Caisse is current in a strategic electrical energy transmission community of 695 km in Brazil.
  • In 2015, the Caisse participated within the acquisition of the 99-year lease for Australia’s largest electrical energy transmission community.
  • In 2016, the corporate invested in thermal, hydroelectric and electrical energy technology and distribution property in India via the funding platform.
  • In 2018, it lent cash to Colombian energy technology firm Empresas Públicas de Medellín (EPM).
  • In 2021, the Caisse consolidated its position as majority investor in Énergir, half of whose property (US$8 billion) at the moment are linked to the manufacturing and distribution of electrical energy and renewable vitality and providers.
  • In 2022, the Caisse acquired the Terna Group’s portfolio of electrical energy transmission property in Brazil, Peru and Uruguay.
  • Additionally in 2022, the corporate elevated its stake in Apraava Vitality, which is predicted to play a key position in decarbonizing the Indian financial system.

We will solely hope that the “present” between the brand new head of Hydro-Québec, Michael Sabia, and his successor on the head of the Caisse, Charles Emond, goes properly!

Les eaux seront plus agitees pour le Canadien lan prochain