Hydro-Québec buys biomass power

Dec. 21, 2011, Montreal, QC – Hydro-Québec has launched a program that seeks
to buy 150 megawatts of power from forest biomass plants.

According to an article in the Montreal Gazette, each of the plants will generate no more than 50 MW of power at the 2009 rate (adjusted for 2012) of 10.6 cents per kilowatt hour.

Interested parties, including the Conseil de l'industrie forestière
du Québec, had sought to convince the energy regulatory board that a
higher price was warranted for the new block of power. But, the Régie de l'Énergie found last year that the price was "reasonable and appropriate."

In
a cost scenario put to the energy board, Hydro-Québec suggested that if
the 150 MW of power was on the grid by 2016 – by which time the price
to suppliers would be 11.5 cents/kWh – energy costs to the utility would
be $136 million.