Legault’s government is preparing for negotiations to renew Hydro-Québec’s 1969 contract to purchase power from Churchill Falls
. Under the current contract, which expires in 2041, Quebec purchases more than 5,000 megawatts of Churchill Falls power at 0.2 cents per kilowatt-hour, a tiny fraction of the energy’s resale value.
Building new dams in Quebec could prove challenging. Such megaprojects are much harder to build now than in the past because construction costs are higher, and First Nations and environmentalists are more active. The Innu of Labrador have sued Hydro-Québec for $4-billion in damages from when their traditional territories were flooded to build reservoirs decades ago. “This is not ethical,” said Etienne Rich, Grand Chief of the Innu Nation.
Hydro-Québec told The Canadian Press in December it didn’t have other dam projects on the horizon, citing lengthy construction periods and high costs. Other renewable energy sources, such as wind, have also become more feasible, the utility said. The province’s experience in undertaking on its own the 824 megawatt Muskrat Falls hydro development, which has gone billions of dollars over budget and led to a federal bailout, has underscored the need for the government to attract outside partners to proceed with any other development, including the much larger 2,250 MW Gull Island hydro project downstream from Churchill Falls.
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