The Canadian Club of Toronto and the Club canadien de Toronto present Éric Martel, Chairman and Executive Officer of Hydro-Québec
http://clubcanadien.ca/
4. HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DOBETTER
4
IMPROVEMENT OF PUBLIC
SATISFACTION
12%83%
2015
95%
2016
5. HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DOBETTER
OPTIMIZATION OF
CUSTOMER SERVICES
5
AVERAGE CALL WAIT TIME
(sec)
COMPLAINTS RECEIVED
CONNECTIONS INVOLVING
MULTIPLE PARTIES DONE ON
TIME (%)
205
2015
94
2016
4,308
2015
2,756
2016
55
2015
90
2016
54% 36% 35%
6. HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DOBETTER
CONTINUOUS IMPROVEMENT
OF PRODUCTIVITY
6
ASSETS ($G) CUSTOMERS EMPLOYEES
31
1986
75
2016
2.7
1986
4.2
2016
20,630
1986
19,974
2016
242% 147% 4%
7. HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DOBETTER
LOWEST RESIDENTIAL RATES
IN NORTH AMERICA
7
MONTRÉAL
$72
VANCOUVER
$103 TORONTO
$143
NEW YORK
$289
BOSTON
$300
8. HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DOBETTER
INFLATION AND TRENDS IN ENERGY PRICES IN
QUÉBEC (1963–2015)
8
0
500
1 000
1 500
2 000
2 500
3 000
1963 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Electricity
Index (1963 = 100)
Natural gas Oil CPI
10. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
2030 OBJECTIVE:
DOUBLE HYDRO-QUÉBEC’S REVENUE
10
2015
$13.8B
REVENUE
$3.2B
NET INCOME
$27B
REVENUE
$5.2B
NET INCOME
2030
11. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
DEVELOP NEW GROWTH AVENUES
11
ACQUISITION OF ASSETS
AND STAKES
COMMERCIALIZATION OF
INNOVATIVE SOLUTIONS
INCREASE EXPORTS
12. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
CURRENT EXPORTS
12
BREAKDOWN OF SALES TO
EXPORT MARKETS
3.6 TWh
ONTARIO
7.2 TWh
NEW YORK
15.2 TWh
NEW ENGLAND
2.4 TWh
NEW BRUNSWICK
171 TWh
QUÉBEC LOAD
15%
VOLUME
29%
PROFITS
=
13. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
EXPORT OPPORTUNITIES
5-YEAR HORIZON
13
3.6 TWh
ONTARIO
7.2 TWh
NEW YORK
+ 10.4
TWh
15.2 TWh
NEW ENGLAND
+ 9.45
TWh
+ 8
TWh
14. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
COMMERCIALIZATION OF
INNOVATIVE SOLUTIONS
IREQ: INTERNATIONALLY
RENOWNED EXPERTISE
500 people
1,100 patents
$130 M in R&D
TM4
4,300 motors sold in 2016
14
15. AIMHIGH
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
ACQUISITION OF ASSETS
AND STAKES
PARTNERSHIP IN EUROPE
Strategic cooperation with a view to acquisition
Exchange of expertise
• R&D
• Human resources
15
17. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
COP 21 –
PARIS AGREEMENT
LIMIT GLOBAL
WARMING
"TO LESS THAN"
2°C
19. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
U.S. CLEAN POWER PLAN TARGETS
19
-37%
-47%
-45%
-40%
-41%
-39%
-20%
-11%
-20%
-14%
-22%
-37%
-40%
-44%
-40%
-48%
-44%
-10%
-34%
-36%
-36%
-32%
-42%
-42%
-37%
-36%
-31%
-39%
-37%
-40%
-41%
-20% -33% -34%
-35%
-36%
-37%
-37%
-35%
-26%
-23%
-18%
-16%
-7%
-27%
-26%
-37%
20. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
OUR POWER:
HELPING QUÉBEC AND NEIGHBORING MARKETS
20
1,000 MW
TO NEW YORK
1,000 MW
TO NEW ENGLAND
1/2
GHG
TARGET*
*Massachusetts
1/3
GHG
TARGET
21. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
CONTRIBUTE TO QUÉBEC DECARBONIZATION
BY ELECTRIFICATION OF TRANSPORT
21
5 M
5 MILLION
GAS-POWERED VEHICLES
-$7.7B
BALANCE OF TRADE
(exports vs. imports)
(2015)
17.5M
GHG EMISSIONS
(t/year)
5 MILLION
ELECTRIC VEHICLES
-$3.7B 2.6M 14 TWh
OR $1.1B
ELECTRICITY SALES IN
QUÉBEC
$0
22. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.22
POTENTIAL FOR DISRUPTION OF
THE ELECTRICITY SYSTEM
Source:
DECENTRALIZATION
Makes customers active elements of
the system, though requires
significant coordination
Key technologies:
energy efficiency, solar PV, distributed
storage, microgrids, demand response
DIGITALIZATION
Allows for open, real-time, automated communication and
operation of the system
Key technologies:
Network technologies (smart metering, remote control and
automation systems) and beyond the meter (optimization and
aggregation platforms, smart appliances and devices)
ELECTRIFICATION
Critical to long-term carbon
goals and will be a relevant
distributed resource
Key technologies:
Electric vehicles, vehicle to
grid/home, smart charging, heat
pumps
POTENTIAL FOR DISRUPTION
FUELED BY
Exponentially decreasing
technology costs
Innovative new business
models
Low asset utilization
of the electricity grid
23. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
INCREASING PENETRATION OF TECHNOLOGY
IN THE NEXT 20 YEARS
ELECTRIC VEHICLES ROOFTOP SOLAR SMART HOME
Percent of new car sales US household penetration rates for
rooftop solar installations*
US household penetration rates in the
Smart Home market
Source:
2015
2020
2025
2030
2035
2040
0
10
20
30
40
50
60
70
80
90
100%
0
10
20
30
40
50
60
70
80
90
100%
0
10
20
30
40
50
60
70
80
90
100%
2015
2020
2025
2030
2035
2040
2015
2020
2025
2030
25-55%
by 2040
Energy mgmt
30-50% by
2030
Home
automation
and security
50-80% by
2030
20-50%
by 2040
24. BUILDTHEFUTURE
HYDRO-QUEBEC: LEADING THE ENERGY TRANSITION
DO BETTER, AIM HIGH, BUILD THE FUTURE.
TAKE PART IN INNOVATIVE
PROJECTS
A SMARTER GRID
Tomorrow’s grid: power exchange
• Supply Hydro-Québec grid in peak
hours (V2G)
• Supply part of house in case of power
failure (V2H)
Development of bidirectional
technologies
24
25. HYDRO-QUÉBEC: LEADING THE ENERGY TRANSITION
ÉRIC MARTEL, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
DO BETTER, AIM HIGH, BUILD THE FUTURE.