The Quebec government has issued a draft regulation to procure 450 MW of wind power that includes 300 MW to be installed in the Bas-Saint-Laurent and Gaspesie-Iles-de-la-Madeleine regions. The remaining 150 MW will be generated by projects located in other regions of the province.
The power call is part of a previously announced procurement of 800 MW of wind power. The amount enables the Quebec government to meet its goal of 4 GW of wind power, as laid out in the province's 2006 – 2015 energy strategy.
Hydro-Quebec Distribution will procure the energy in two phases: 225 MW of capacity by December 1, 2017, and an additional 225 MW of capacity by December 1, 2018. Hydro-Quebec is required to issue a call for tenders for the 450 MW block of wind power within 90 days of the publication of the regulation in its final form.
The regulation states that local or regional municipalities, First Nations or inter-municipal boards will be required to hold an interest representing more than 50% of the control in each of the projects, which may be problematic for some, according to Louis-Nicolas Boulanger, partner at law firm McCarthy Tetrault.
‘The requirement for local communities to hold a controlling interest in the projects may pose challenges for private developers in the structuring of their projects,’ he says. ‘In 2008, the Quebec government had imposed a similar requirement in connection with First Nations projects.’