Quebec’s energy outlook for 2026 and what it means for industry

Electricity production is down. Net imports are rising. Climate targets have been pushed to 2035.

The 12th edition of The State of Energy in Québec, published by HEC Montréal, sends a clear message to Québec’s industrial sector: the energy environment is changing quickly, and strategic planning can no longer rely on past assumptions.

For plant managers, engineers and VPs of Operations in food processing, manufacturing and heavy industry, this report reshapes how industrial energy performance must be approached in Québec.

Electricity is no longer abundant

In 2024, Québec’s electricity production reached 185 TWh, which is a significant decline. More notably, Québec became a net importer of electricity from New York (4 TWh imported versus 2 TWh exported).

For industrial facilities under Rate L (≥ 5,000 kW), this historic shift changes three key realities:

• Electricity can no longer be considered an unlimited resource.

• Available capacity margins are tightening.

• Energy allocation decisions are becoming more competitive.
  
  

Improving internal energy performance is no longer just about controlling costs. It is about strengthening operational resilience.

Declining energy productivity is declining and impacting margins

The report points to a decline in energy productivity: more energy is now required to generate each dollar of economic output.

Here are the direct consequences for your facility:

• Higher unit production costs. Increased pressure on margins. Greater exposure to rate volatility and regulatory change.
  
  
• With climate targets now extended to 2035, regulatory uncertainty complicates long-term investment decisions. Waiting for perfect clarity becomes a strategic risk.

82 TWh of waste heat Is going untapped

While attention remains focused on electricity supply, one structural reality remains underused: Québec releases approximately 82 TWh of industrial waste heat every year. That represents close to half of Hydro-Québec’s total electricity production

For dairy, brewing and processing facilities, heat recovery is no longer just an environmental initiative. It is a business opportunity.

Proven results in the field

• Up to 95% reduction in GHG emissions from thermal processes.

• 30% or greater reduction in energy consumption.

• Return on investment under 5 years, supported by significant subsidies.

• Long-term cost stabilization.

Often, the most strategic energy source is already inside your plant.

The smartest solutions are available today

Although 1,000 MW of electrolysis capacity is under development, green hydrogen still represents less than 1% of Québec’s overall energy balance.

Today, the most cost-effective solutions remain thermal system optimization, waste heat recovery, high-temperature heat pumps, heat networks and ISO 50001 energy management systems

An holistic approach drives measurable performance

Turning these findings into tangible results requires more than a one-time audit.

Energy intelligence depends on a 360-degree perspective that takes into account all thermal, electrical and operational flows across an industrial site.

The ATIS methodology combines in-depth energy diagnostics, custom engineering and design, turnkey implementation and real-time performance monitoring through detailed dashboards.

With more than 100 energy studies and projects completed, and 20 MW of heat pumps installed in demanding industrial environments, ATIS has shown that a comprehensive approach drives long-term performance, secures future energy capacity and delivers measurable ROI.

We don’t optimize isolated equipment. We transform the energy ecosystem.

Energy transition is a strategic business decision

The State of Energy in Québec 2026 outlines a clear reality.

Electricity is becoming a strategic asset. Climate targets are evolving. Pressure on energy productivity is increasing.

Industrial organizations that manage their thermal flows and recover waste heat can reduce GHG emissions by up to 95%, protect margins against energy volatility, stabilize costs over 15 to 20 years and strengthen their competitive position.

Industrial energy transition is no longer symbolic. It is a governance decision with direct impact on financial performance.

Stay ahead of energy challenges

Does your facility generate heat? Do your processes release thermal energy?

That energy can be a powerful lever to improve performance. Instead of letting energy go to waste, it should be managed strategically.

Contact ATIS to take control and start your energy transition.

For more than 20 years, ATIS Énergie has supported Québec industries through every stage of their energy transition, from initial audit to long-term performance monitoring. With over 100 energy studies completed and 20 MW of systems installed, our integrated approach delivers measurable results and proven returns.