To large power consumers served by off‑grid systems

Summary of the measure

As part of the Fall 2018 Update on Québec’s Economic and Financial Situation, the government announced the implementation of a program designed to support investments in businesses served by autonomous networks.

Through this program, large businesses served by Hydro-Québec’s off‑grid systems that carry out one or more eligible investment projects may receive government assistance in the form of reduced electricity costs.

The assistance provided allows for the reimbursement of up to 50% of the eligible costs:

the reimbursement of 40% of the eligible investments made;
the additional reimbursement of up to 10% of the eligible investments made for projects aimed at greenhouse gas (GHG) emission intensity reductions.

The maximum reduction of the electricity bill is 20% for a maximum period of:

four years; or
eight years in the case of an application concerning at least $250 million;
four years over a maximum period of six years if the business responsible for the project successfully demonstrates to the Ministère des Finances, before January 1, 2023, that the project has been impacted by the health crisis.

For example, a business with an annual electricity bill of $12 million whose eligible costs total $5 million can benefit from $2 million in total financial assistance, that is, the reimbursement of 40% of the eligible costs of its project. The assistance granted will correspond to a 20% reduction in its electricity bill for 10 months. However, if the allowable costs stand at $60 million, the business will benefit from $9.6 million in total assistance, that is, 20% of its annual electricity bill for four years. A business that has demonstrated that it has been impacted by the public health crisis will receive a total of $9.6 million, or 20% of its annual electricity bill for four years, spread over a maximum of six years.

Eligibility

To be eligible for the measure, the investment projects must be carried out in Québec by large power consumers served by Hydro-Québec’s off‑grid systems, that is, businesses with annual contracts whose available power is at least 5 000 kilovolt‑amperes. The eligibility application that a business submits can combine several investment projects.

Minimum investment threshold

The total planned investments in the application must reach a minimum investment threshold that corresponds to the lesser of:

40% of the annual cost of electricity for all of the business’ establishments in which the available power is at least 5 000 kilovolt‑amperes; and
$40 million.

Eligibility certificate

To obtain an eligibility certificate, businesses must submit a detailed investment plan and show that each of their projects achieves one of the program’s objectives, namely:

the enhancement of productivity or energy efficiency through the modernization of operating procedures;
the conversion of production processes to adapt existing products to market demands;
increased output to adapt supply to market demands;
the launching of new production.

Where applicable, the businesses must show the potential GHG emission intensity reduction.

Application period of the measure

A discount may be applied to the electricity bill of a business for consumption between January 1, 2017 and December 31, 2032. The discount will be applied as of the date of the second bill issued following the month of submission of the first audited report on capitalized costs, or later if the business indicates this when submitting the report, and a reduction of the electricity bill may be applied:

for a maximum period of four years; or
for a maximum period of eight years in the case of an application concerning at least $250 million; or;
for projects impacted by the health crisis for a period of four years spread over a maximum of six years.

If, as a result of these reports, two or more discounts are due simultaneously, the discounts will be applicable consecutively in the order in which they are requested.

Maximum reduction of the electricity bill

The maximum reduction of the electricity bill will be 20% for establishments with an annual contract whose available power is at least 5 000 kilovolt‑amperes.

The amount of the eligible reimbursement is calculated according to the investments carried out. If the amount of the eligible reimbursement for a given year exceeds the maximum reduction of 20% of electricity costs, the surplus may be carried over to subsequent years.