Thank you, Mr. Chair.
Members of the committee, Mr. Chair, thank you for having us today.
Hydro-Québec is a government-owned corporation belonging to the Government of Quebec. It generates, transmits and distributes electricity from renewable sources.
I am the chief operating officer of Hydro-Québec Energy Services U.S., the entity responsible for transactions with neighbouring markets in the United States.
Hydro‑Québec is a source of pride for us. It's the largest producer of renewable energy in North America. Its network consists of 62 hydroelectric power plants and has a capacity of 37,000 megawatts.
Hydroelectric power is renewable and flexible. Thanks to the large reservoirs in which we store water and, of course, energy, we can provide baseload power, very quickly scale production up or down to follow market trends, and store energy in the form of water over months, seasons and even years to ensure that energy is available when needed.
This unique product puts Quebec in a unique position that enables us to seize business opportunities around us. This is due first and foremost to our hydroelectric resources, but also to the privileged geographic location we occupy in relation to the markets surrounding us.
Hydro‑Québec operates interconnections and transmission lines that cross the border into the United States, more specifically to New York State and New England, but also to Ontario and New Brunswick. These interconnections have a combined capacity of approximately 8,500 megawatts.
More specifically, we've been exporting our electricity to New York State for over 100 years, and to New England for over 30 years. Until very recently, we had 104,000 megawatts of interconnection capacity to the two U.S. markets I just mentioned, namely New York and New England. This capacity will increase significantly thanks to the two new transmission line projects currently under construction. In fact, one has just been completed: the line to Massachusetts and New England. Deliveries began last January. The other line, to New York, is in the final stages of construction.
In terms of volume, we have exported on average about 15 terawatt-hours per year over the past five years, which represents approximately $6 billion in cumulative revenue, or just over $1 billion in revenue per year.
There is a distinction to be made regarding the type of sales we've had in the past. We have had a lot of sales on short-term markets. As for upcoming contracts—especially the two major contracts I will elaborate on a bit more—sales will be conducted through long-term agreements. Customers around us have basically shown a great deal of interest in securing firm agreements with Hydro‑Québec to guarantee a constant supply to their market and, of course, price stability. In return, those customers were willing to agree to a higher price to receive these guarantees.
In New York, the line I mentioned is the Champlain Hudson Power Express project. It's a 1,250-megawatt line that, by next June, will account for 20% of New York City's energy. In terms of emissions, it's as if every other car in New York City had been removed.
In Massachusetts, we have the New England Clean Energy Connect project, or NECEC. This project has been in operation since January and accounts for 20% of Massachusetts' energy.
In both cases, we're talking about enough energy to power approximately 1 million homes through each of these projects.
For Quebec and neighbouring markets, the benefits are clear. Quebec's renewable energy exports generate significant revenue. In the case of the two new contracts I just mentioned, we're talking about revenue of $50 billion over 25 years.
The exports are shifting these markets away from fossil fuels. As I mentioned, in New York, that is equivalent to reducing the number of cars by 50%. It's not just about reducing polluting emissions from local power generation, which is often based on oil; it's also about reducing the pollutants that drift down into the city and cause health problems for local residents, especially in disadvantaged neighbourhoods.
Interconnected markets, such as those we have with our neighbours, improve our resilience in the event of major incidents. We remember the ice storm in particular, when Quebec imported a lot of energy, which made it possible to keep the lights on in southern Quebec.
In closing, it is important to emphasize a critical point: In order to maintain the benefits I just mentioned, it is very important that the sector remain tariff-free. We've heard a lot about the tariff threat from our American neighbours. We all benefit from those markets, which are currently open, and it's crucial to maintain this status. It's precisely this openness of markets, from which we all benefit, that enables us to preserve this flexibility and energy security.
That concludes my opening remarks.
Thank you.