Québec Is Running Out of Energy, Literally

As the final pre-election parliamentary session concludes, it is abundantly clear that energy remains one of the major blind spots of the CAQ government’s record. Energy supply issues have rarely been at the forefront of public debate, yet they lie at the heart of almost every major economic challenge facing Québec. The warning signs are multiplying and show no signs of easing.

For one, Hydro-Québec is dealing with low reservoir levels. Québec has been importing electricity from Ontario for several months, often at significant cost. In a province that has long relied on the abundance of its own hydroelectricity as a strategic advantage, this recent development is not merely a technical detail. It is an alarm bell.

Despite these costly imports, the government continues to speak about the energy transition as if the path forward has already been clearly defined, promising more electrification, more industrial projects, more growth, and more decarbonization. But the basic question remains: powered by which energy sources? Decarbonization efforts, in their current form, are largely an illusion. Energy efficiency is a laudable goal, but it is not enough to absorb rising demand, and on its own, efficiency measures will never replace missing megawatts.

The same disconnect is evident in the natural gas file. Prices are rising, in part because of the inclusion of so-called renewable natural gas, often imported from the United States. Meanwhile, Québec still refuses to take a serious look at the gas resources available within its own territory. In other words, households and businesses are being asked to pay more for energy from elsewhere, while resources that could contribute to energy security are being left untapped, right beneath their feet.

Worse still, the government is imposing a 5% quota for the consumption of renewable gas, a threshold that will double to 10% in 2032. This gas costs more than three times the price of conventional natural gas, is predominantly imported from the United States, and is often unwanted by consumers. Instead of easing the pressure on households and businesses, Québec is adding another costly constraint to an energy system already under duress.

The government’s most consequential mistake may be its failure to understand early enough that energy is not strictly an environmental issue, but also a matter of security, competitiveness, and economic sovereignty. In an unstable global context, the inability to secure Québec’s own energy supply could prove very costly, very quickly.

Québec is running out of energy, and the situation shows no sign of improving. If the government continues to delay difficult choices, Quebecers in all regions will pay the price. To avoid gradual deindustrialization, the province must accept the simple truth that it will need more energy, in multiple forms, and a clear, highly focused strategy.