Hydro-Quebec

Core Business and Operations

The activities of Hydro-Québec are fundamentally organized into three major and interconnected business segments: Generation, Transmission, and Distribution.

Generation The company's primary focus is on the generation of electricity, and it is a global leader in the field of large-scale hydropower. Close to 100% of the electricity produced by Hydro-Québec is sourced from water, classifying it as a clean, renewable energy option with very low greenhouse gas (GHG) emissions. * Scale and Infrastructure: Hydro-Québec operates approximately 60 to 63 hydroelectric generating stations, with a combined output capacity of 37,370 megawatts. This extensive network harnesses the immense water resources of Quebec, which account for more than 40 percent of Canada's total. * Diverse Energy Sources: While hydropower is dominant, the Generation division is also responsible for power production in remote communities not connected to the main grid. This includes operating an off-grid hydroelectric dam and several small diesel power plants in regions like the Magdalen Islands and Nunavik. The division also manages power purchase agreements with private producers of other renewable sources, such as wind power and forest biomass.

Transmission The transmission division, known as Hydro-Québec Trans??nergie, operates the largest electricity transmission network in all of North America. This network is crucial for moving vast amounts of power from remote generating stations to more populated areas and interconnection points. * Network Extent: The transmission system comprises over 34,000 km of high-voltage lines, including the company's renowned 735 kV network. * System Operator Role: Trans??nergie functions as the independent system operator and reliability coordinator for the Québec interconnection within the North American Electric Reliability Corporation (NERC) system, ensuring grid reliability and coordination. * Energy Export: A significant function of the transmission network is facilitating the export of clean, renewable power to markets outside of the province, primarily to portions of the Northeast United States, where Hydro-Québec supplies a notable percentage of the region's power requirements. This export activity is a major revenue stream for the Crown corporation.

Distribution The Distribution division is responsible for delivering the electric power to the end-users???approximately 4.4 million customers???across Quebec. * Customer Service: The company's mandate includes ensuring a safe, reliable power supply and offering outstanding customer service to its residential, business, and industrial clients. * Infrastructure: The combined transmission and distribution lines extend for approximately 260,000 km, crisscrossing the province to deliver electricity to every customer.

Products and Services Offered

The offerings of Hydro-Québec extend beyond the basic commodity of electricity supply, encompassing technological innovations, energy efficiency programs, and value-added services aimed at supporting the energy transition and a low-carbon economy.

1. Electric Power (The Primary Product) The fundamental product is reliable, clean, and renewable electric power. This is supplied to all sectors of the Quebec market at competitive prices.

2. Research and Development (R&D) and Technological Innovation Hydro-Québec is distinguished by operating its own large-scale research institute, L'Institut de recherche d'Hydro-Québec (IREQ), which is the only facility of its size run by an electric utility in North America. IREQ is a center for technological breakthroughs that support the company's activities and future ambitions. * Areas of Expertise: IREQ specializes in high voltage, mechanics and thermomechanics, network simulations, and calibration. * Innovations: The company's R&D has led to the development of key technologies such as safe battery materials, advanced energy storage systems, and electrical powertrain systems, including the formerly developed TM4 electric engine.

3. Electrification and Mobility Services * The Electric Circuit (Le Circuit électrique): Hydro-Québec operates The Electric Circuit, which is the largest public electric vehicle (EV) charging network in Quebec and Eastern Ontario, promoting transportation electrification.

4. Energy Efficiency and Smart Home Services * Hilo: Hilo is a subsidiary of Hydro-Québec that is an energy management service and "virtual generating station". It offers smart home products and services to coordinate customer energy demands, allowing the company to make energy available for the power system during peak periods. * Energy Management Programs: The company offers various programs and tools to help customers understand and reduce their electricity consumption, such as the LogisVert program and the Energy Performance Indicator.

5. International Expertise and Consulting The company occasionally leverages its unique know-how in complex electrical systems, particularly in hydropower and large transmission networks, through subsidiaries or agreements, to provide expertise and technology transfer abroad. For instance, the subsidiary SCE France SAS is dedicated to research and technology transfer in fields like transportation electrification and energy storage. Hydro-Québec also holds equity stakes in various companies to profit from its expertise and further its strategies for a low-carbon economy.