Investing in energy productivity: a strategic lever for Québec businesses

In an economic context marked by unprecedented pressures, Québec businesses must redouble their efforts to remain competitive. Between the threat of increased export tariffs, trade tensions and the anticipated increase in the cost of electricity or natural gas, it is becoming essential to optimise every available resource. One of the most powerful levers to address these challenges is investment in energy productivity.

Climate policies are already being undermined by the Canadian political environment, federal and provincial government deficits, and challenges to the environmental policies of our trading partners. Today, the threat of 25% tariffs on Canadian exports to the U.S., followed by the Canadian and provincial response with import tariffs, is putting more pressure on our businesses. In the face of these challenges, it is imperative to promote energy performance and the reduction of operating costs to enhance competitiveness.

Why invest in energy productivity?

1. Improve profitability: Saving energy reduces operating costs and improves return on investment (ROI). An ROI of less than three years is often required to justify a project, highlighting the importance of financial incentives and energy subsidies.
2. Reducing greenhouse gas emissions: The climate crisis caused by human activities is ongoing and is demonstrating its devastating effects all over the planet in all seasons. It is urgent to maintain the GHG reduction targets and that everyone participates. The financial tools are in place to call us to order and take action.
3. Anticipate fluctuations in energy prices: The price of natural gas remains low, but its future is uncertain. It could explode due to growing energy demand and geopolitical tensions, as in 2021-2023, or remain stable due to its abundance. In addition, the price of electricity in Quebec, although competitive, is expected to increase by about 6% per year in the coming years. Focusing on energy efficiency allows companies to better control their costs in the long term.
4. Adapting to new economic realities: Businesses are facing economic pressures that are driving them to consolidate cash flow and reduce expenses. Energy optimization can be a key factor in preserving their competitiveness without compromising their development.
5. Benefit from strategic support: Hydro-Québec, Énergir and the Government of Québec offer subsidy programs and financial incentives to encourage the implementation of energy-saving projects. It is essential that companies understand how to maximize these opportunities.

Hydro-Québec: a key role in supporting businesses

In this context, Hydro-Québec must increase its efforts to support businesses in their energy transition. Here are some recommendations to strengthen its impact:

1. Encourage ambitious solutions: Companies must be encouraged to completely review their energy management. For example, a company wishing to increase its production by eight was refused a power increase of nearly 30 MW. By taking a holistic energy approach, the company energy demand was lowered to an additional 4 MW which enabled the acceptance of the expansion. These initiatives must be supported and promoted.
2. Strengthen funding programs: Hydro-Québec should offer financial disbursements from the outset and throughout projects, as the EcoPerformance program does, to facilitate their implementation.
3. Reduce administrative delays: Waiting long for responses significantly slows down the adoption of energy efficiency projects. Accelerating decision-making processes is essential to achieving Québec's energy objectives.
4. Better communicate about opportunities: Many companies are unaware of the subsidies available to improve their energy efficiency. Hydro-Québec must develop energy awareness and training initiatives to communicate this knowledge.
5. Promote best practices: Supporting technological showcases, promoting the development of technologies developed and manufactured in Quebec, organizing professional events and highlighting exemplary companies in terms of energy productivity would create a beneficial ripple effect for the entire Quebec industrial fabric.

Conclusion

In a tense economic context, optimizing energy productivity is an essential strategy to strengthen the competitiveness of Quebec businesses. This shift cannot be made without structured and effective support. By putting its resources at the service of this transformation, Hydro-Québec can not only contribute to achieving Québec's energy objectives but also help preserve and strengthen Québec's economy.

Companies must therefore see investment in energy efficiency as a lever for sustainable growth. More than just an environmental issue, it is an economic necessity to adapt to the realities of the market and ensure their long-term prosperity.