10th edition of the State of Energy in Quebec

10^th edition of the State of Energy in Quebec

February 8, 2024

It is still too early to distinguish between the effects of the pandemic, prices, and the energy transition in Quebec in production and consumption data. For instance, there was a 7% increase in petroleum product sales from 2021 to 2022, and an increasing number of large vehicles is being added to the fleet. This illustrates the gap between our energy consumption habits and the targets that are not on track to being achieved.

These are the main findings of The State of Energy in Quebec 2024 Edition, which has just been released by the HEC Montréal Chair in Energy Sector Management. This annual review, which has been prepared by Pierre-Olivier Pineau, Research Chair in Energy Sector Management, and Johanne Whitmore, is financed with support from the Government of Quebec. Here are some highlights.

The struggle to break with past inertia

• Energy consumption trends will need to change if Quebec wants to meet the 2030 targets, particularly in terms of greenhouse gas mitigation.
• Since 2014, the fleet of vehicles and the floor area to be heated have continued to increase faster than the population, except in 2022, when a slowdown in growth was observed.
• The energy efficiency of industries remains unchanged, and the per capita energy consumption remains one of the highest in the world.

Energy consumption and vehicle sales

• Consumption of gasoline, diesel and other petroleum products has continued to rise, without however catching up with pre-pandemic levels in 2022.
• The sales share of SUVs and other gas-powered trucks continues to increase in the market: 70% in 2022, compared to 24% in 1990.
• In 2022, electric vehicles accounted for 13% of new vehicle sales.
• In Quebec, nearly 60% of the energy consumed by the industrial sector is lost. There are only about 26 certifications to ISO 50001 - the international standard for Energy Management Systems - across Canada, compared to 5,523 in Germany.

Electricity: significant power and energy requirements

• Hydro-Québec estimates that around 15,000 MW will have to be added to the 46,000 MW of installed power in Quebec, while managing to avoid consuming 3,500 MW during peak hours in 2035.
• Cross-subsidization of residential customers increased further in 2022 (i.e., the portion of costs borne by industrial and commercial customers).
• In 2019, households with incomes above $150,000 consumed more than 25,000 kWh on average, while those earning less than $40,000 only consumed 13,000 kWh.

New energy sectors

• Despite their importance for the energy transition, there is currently no official and public census, either federal or provincial, of all the projects in the new energy sectors.
• Biodiesel and ethanol production capacities remained virtually unchanged in 2023, compared to 2021.
• The number of listed green hydrogen projects that were being considered, awaiting energy block authorization and self-production or under development, increased from 4 to 14, from 2022 to 2023, totaling production of more than 900,000 kg of green hydrogen per day and a complete electrolyzer power of 3,000 MW.

Regional challenges

• From 2010 to 2021, the number of vehicles per 1,000 inhabitants increased in almost all regions of Quebec (except Montérégie), from 543 to 580.
• On the other hand, annual fuel sales per capita have decreased in Quebec - from 1,083 litres in 2010 to 956 litres in 2022 - except in 4 regions: Mauricie, Estrie, Nord-du-Québec and Gaspésie.

Find out more

The State of Energy in Quebec 2024 Edition [only in French]

HEC Montréal Chair in Energy Sector Management

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