Natural Resources Committee on June 2nd, 2026

[Martin Tremblay]

Is the question for me, Mr. Saini?

[Gurbux Saini, Liberal, Fleetwood—Port Kells, BC]

Yes, it's for you.

[Martin Tremblay]

As I mentioned earlier, we have a production capacity of 40,000 megawatts in Quebec. In the summer, we use approximately 22,000 megawatts of that capacity. So, yes, there is room for exports during the summer months and between seasons.

During the winter, we occasionally approach the production ceiling. So, to meet power demand in Quebec, we purchase electricity. To answer your question, we buy, but we also sell electricity to our neighbours.

[Gurbux Saini, Liberal, Fleetwood—Port Kells, BC]

Mr. Calzado, currently, under major projects, there is a transmission line, the northwest transmission line, which is going to link British Columbia and Alberta.

Could those types of interties and interprovincial transmission lines strengthen Canada's renewal energy development?

[Luis Calzado]

The jurisdiction where the association, AQPER, works is Quebec. To your question, yes, as I said in my opening speech, the additional transmission lines will help us to deploy more renewable energies. It will provide new points of interconnection where we can deploy renewable energies—maybe solar and maybe wind.

[Gurbux Saini, Liberal, Fleetwood—Port Kells, BC]

Do you view the clean technology investment tax credit as helpful for the development of renewable energy? Also, do you support this expansion to high-voltage interprovincial lines?

[Luis Calzado]

The idea is to have all the tools to be able to deploy renewable energies, so if you will help us to deploy or interconnect the projects, then why not? Again, it's a decision that should be taken from the government side. From the side of the producers, what we want to have is additional points of interconnection, and if these points can be deployed as fast as possible, then it will give us additional possibilities to be able to deploy renewables.

[Gurbux Saini, Liberal, Fleetwood—Port Kells, BC]

Can you describe the economics of the renewable energy opportunity in Canada and Quebec?

[Luis Calzado]

As Mr. Tremblay was indicating, here in Quebec we've been deploying hydro power potential for several years. We haven't used the full potential of wind energy. We started 20 years ago with it. So far, we only have 4,000 megawatts. Now we have ambitious targets to deploy additional wind energy. That's one start.

Regarding solar energy, we have targets. We're starting slowly. I think we should be more ambitious. There are a lot of energy resources that can be used in the energy transition, but we shouldn't just look at it as an energy transition. It could also help our economy.

As I indicated, we developed a study that estimates how many jobs have been created from the 4,000 megawatts in operation, and how many jobs will be created from the 4,000 megawatts that will have to be deployed by 2029 and the 11,000 megawatts that we have in our timeline here in Quebec for 2035.

Hence, it's also an economic option and incentive for the province, and it can help us bring new sectors here to Quebec and to Canada.

[The Chair, Liberal, Terry Duguid]

Thank you both.

Now we have Monsieur Simard for two and a half minutes.

[Mario Simard, Bloc, Jonquière, QC]

Thank you very much, Mr. Chair.

Mr. Tremblay, we'll need to clarify the issue of electrical power management. With the analysts' support, we may send you a few questions, because I'd like to see this included in the report. It's a blind spot that isn't usually addressed when we talk about electrification.

I'm addressing both you, Mr. Calzado, and you, Mr. Tremblay. In response to one of my questions, you mentioned the possibility of extending the tax credit to 50%. There is another tool that might be worth considering.

In the latest budget, the federal government provided for accelerated depreciation for gas infrastructure. This means that, in the first three years, you can already depreciate 100% of the costs of the infrastructure you purchase.

If this measure were extended to electricity generation and related technologies, would that, in your view, Mr. Tremblay, allow you to sell your technology and, in the case of AQPER, enable your members to develop more projects?

What if we had the same structure as the gas sector in terms of accelerated depreciation?

[Martin Tremblay]

I can begin, Mr. Calzado.

Of course, yes, that could be an incentive for certain companies, which could benefit from this tax break in the first year. I believe that would be a step in the right direction for the industrial market.

[Luis Calzado]

It's the same for us.

You know, developing projects means making investments that must pay off for independent producers. This measure would allow those investments to be used for other projects that utilize different technologies.

[The Chair, Liberal, Terry Duguid]

Thank you.

Mr. Malette, you have the floor for five minutes.

[Gaétan Malette, Conservative, Kapuskasing—Timmins—Mushkegowuk, ON]

Thank you.

Mr. Calzado, your expertise covers initiatives in clean energy, energy storage, sustainable production and electrification. Energy transmission is part of your areas of expertise.

Based on your experience, can you tell me whether, when electricity is transmitted to regions such as Quebec or northern Ontario—where it travels 300, 400 or even 500 km—there is an energy loss during that transmission? Can you give us the percentage of megawatts lost?

[Luis Calzado]

Yes, there are losses. However, certain technologies will allow us to get closer to the load. Solar power, for example, is a technology that can be installed near a point of consumption. So, if there is less distance to travel, there are fewer losses. That is why, in my speech, I said that we must use all technologies—that is, technologies that can also reduce these losses, including solar power.

[Gaétan Malette, Conservative, Kapuskasing—Timmins—Mushkegowuk, ON]

In the case of hydroelectricity, what would the loss be, as a percentage?

There is a way to improve this. Often, trying to save energy is even easier than creating new production capacity.

[Luis Calzado]

I can't give you an exact figure, but I could look it up in my files. As I said, the idea for us, as producers, is to ensure we can roll out projects where interconnection points will allow us to do so. To do that, we need networks that are either expanded or reinforced. If they are reinforced near the load, then we will be able to develop these projects.

However, there is one important point here: all projects must be developed in collaboration with the host communities. These partnerships are formed between producers and host communities. The goal here is not only to develop production projects; the communities hosting these projects must also be able to benefit from them through financial compensation.

[Gaétan Malette, Conservative, Kapuskasing—Timmins—Mushkegowuk, ON]

Thank you.

Regarding the transmission of hydroelectricity, are there any studies on ways to conserve this energy?

If you cannot answer now, could you provide the committee with information on the transmission of hydroelectricity over long distances?

[Luis Calzado]

Of course, I will send that to you.

[Gaétan Malette, Conservative, Kapuskasing—Timmins—Mushkegowuk, ON]

Thank you.

They say we need to increase production. I come from a region in northern Ontario, home to cities like Cochrane, Hearst, Chapleau and Timmins. We are major energy consumers due to our world-class sawmills, plywood mills and mines.

How can we adapt our energy management strategies to better serve these energy-dependent communities?

What can we do for the future?

Several mines are set to open in the next four or five years.

[Martin Tremblay]

I'll give you an example.

Of course, peak load management is always an asset for reducing the impact of these industries on your region's power grid. Let me give you an example, specifically, in a region of Quebec where there were two decarbonization projects. However, the substation lacked the capacity at that time to handle both projects simultaneously. So, we proposed strategies to the utilities, including energy storage. We were able to carry out both decarbonization projects, even though they added to the electrical load. It exceeded the power the substation could supply. By installing a battery inside one of the plants to balance its power demand and to coordinate the two plants with a substation that had limited capacity, we still managed to get the project approved.

So, peak power demand doesn't occur over long periods. It occurs during short periods. I would even say that there could be a meeting of these industries to protect the substation, rather than the industry itself.

Some mining regions are actually considering helping the grid by installing a storage system so that their plants have less impact on the local substation.

[The Chair, Liberal, Terry Duguid]

Thank you, Mr. Malette.

Mr. Gasparro will wrap up the second panel for five minutes, please.

[Vince Gasparro, Liberal, Eglinton—Lawrence, ON]

Thank you, Mr. Chair.

Thank you, Mr. Calzado and Mr. Tremblay, for joining us today.

I'd like to focus on the investment tax credit regime here in Canada.

Mr. Calzado, specifically for you—and you know this quite well—Canada's clean energy investment tax credit regime is one of the most robust in the G7.

For people watching at home, the investment tax credit regime is a refundable tax credit ranging from 15% to 60% of all capital costs when it comes to renewable energy projects as well as for clean-tech manufacturing. The purpose is to rapidly accelerate the deployment of private sector capital to try to build out renewable energy projects by lowering the upfront capital costs for developers and manufacturers.

Mr. Calzado, can you please talk about how important the investment tax credit regime is to try to accelerate that private sector deployment of capital to build out renewable energy projects?

[Luis Calzado]

It is important, because it facilitates finding the capital that will help us deploy renewable energy. As I indicated, projects here in Quebec are developing partnerships not just with the companies that will bring the technology but also with the local communities.

Here in Quebec, we would like the full tax credits to be given to the companies that deploy these projects. It would facilitate our finding financing.

At the end of the day, the idea is to be able to deploy energy as fast as possible. It's a good initiative from the government, but as I indicated, it would be ideal if it were to fully go to the independent power producers that are bringing the technology. Then they would be able, later on, to invest the remaining capital they may have into other renewable energy projects and help us with the energy transition.