Electricity supply in remote communities Richard Lagrange Manager – Planning and Reliability Hydro-Quebec Pan-canadian Summit on Reducing Diesel in Remote Communities  January 17, 2017

Context Conversion of off-grid systems Energy efficiency

Northern village of Inukjuak

Context

REMOTE COMMUNITIES Population : 35,000 Customers : 18,500 Various communities Atikamekw, Cree, Innu, Inuit, Naskapi & White 24 off-grid systems 5 geographic regions Nunavik Schefferville Basse Côte-Nord Haute-Mauricie Îles-de-la-Madeleine Distribution of thirty communities : Nunavik : Inuit (14) & Cree (1) Basse-Côte-Nord : Innu & White Schefferville : White & Innu & Naskapi Haute Mauricie : Atikamekw & White IDM : White Transfer of responsability Government of Canada in 1982 (Nunavik) Iron Ore Company in 2007 (Schefferville)

OFF-GRID SYSTEMS Generating stations (165 MW) 21 Thermal (Diesel) - 59 MW (2 in cold reserve) 1 Thermal (Fuel oil) - 67 MW 2 Hydroelectric - 39 MW Demand : 446 GWh / 93 MW Revenue : $40M Expenditure : $230M Annual loss : $190M GHG emissions Almost exclusively from off-grid systems plants : ~ 227 k tons equiv. CO2. Overall (including the main grid), Hydro-Québec’s net GHG emission is among the best in North America (almost 100% of our energy is originating from renewable energy – mainly hydroelectric and wind power) The Quebec cap-and-trade system Emission unit price is scheduled to increase at a rate of 5% plus inflation every year The cost of emission rights amounted to $ 2 million in 2016 (Îles-de-la-Madeleine) Demand : actual 2015 Revenue & expenditure : forecast 2017 GHG : actual 2015

ÎLES-DE-LA-MADELEINE – (67 MW) KANGIQSUALUJJUAQ – (2 MW)

Conversion of off-grid systems Strategic Plan 2016 - 2020

PROGRESSIVELY CONVERT OFF-GRID SYSTEMS TO CLEANER, STRATEGIC PLAN 2016-2020 PROGRESSIVELY CONVERT OFF-GRID SYSTEMS TO CLEANER, LESS EXPENSIVE ENERGY SOURCES Launch requests for proposals (RFPs) for all systems by 2020 Partnerships between project proponents and communities Competitive bidding Consideration given to the particularities of each system and the needs of each community so as to choose the most appropriate technological solutions, e.g.: Leveraging on the latest innovations (hybrid systems involving renewable energy, storage), wind power, liquefied natural gas, biomass, connection to main grid, …..

REQUIREMENTS COMMUNITY Agree to project implementation conditions and establish the requirements for participation Project location, type of partnership, monetary compensation, local impacts and social acceptability HYDRO-QUÉBEC Technical and financial obligations Cost reduction GHG emission reduction

CONVERSION – ONGOING Îles-de-la-Madeleine Phase 1 RFP - October 2015 6 MW wind power Commissionning – 2020 Phase 2 RFP – First quarter of 2018 All energy sources (cost and GHG emission reduction) Commissionning – 2023 In competition with Connection to main grid La Romaine Connection to main grid Commissionning – 2019 Obedjiwan RFP - November 2016 Energy generated by forest biomass Commissionning - 2020 Tasiujaq EOI – November 2016 RFP – Third quarter of 2017 New power plant (renewable component is encouraged) Commissionning - 2021 IDM – PHASE 1 Proposals submitted : second quarter of 2017 Contract award : first quarter of 2018 IDM – PHASE 2 Proposals submitted : fourth quarter of 2018 Contract award : second quarter of 2019 OBEDJIWAN Contract award : fourth quarter of 2017 TASIUJAQ Proposals submitted : first quarter of 2018 Contract award : second quarter of 2018 EOI = call for expression of interest

CONVERSION – PLANNED Nunavik – Phase 1 (East) RFP – Third quarter of 2017 All energy sources Aupaluk Kangiqsualujjiuaq Kangiqsujuaq Kangirsuk Kuujjuaq Quaqtaq Nunavik – Phase 2 (West) RFP – Third quarter of 2018 All energy sources Akulivik Inukjuak Ivujivik Kuujjuarapik Puvirnituq Salluit Umiujaq All other systems RFP – Second quarter of 2019 All energy sources Clova L’Île-d’Entrée Port-Menier NUNAVIK – PHASE 1 Proposals submitted : third quarter of 2018 Contract award : first quarter of 2019 NUNAVIK – PHASE 2 Proposals submitted : third quarter of 2019 Contract award : first quarter of 2020 CLOVA, L’ÎLE-D’ENTRÉE AND PORT-MENIER Proposals submitted : second quarter of 2020 Contract award : fourth quarter of 2020 The specific timing of the RFPs is based on the opportunities and features associated with each system.

Energy efficiency

DEMAND SIDE MANAGEMENT Energy Efficiency and Conservation program Accelerate deployment of energy efficient measures : compact fluorescent and LED lighting roof insulation water and energy conservation kits block-heater timers Energy efficiency and conservation awareness Load Reduction Interruptible electricity option Promotion of reduced-load water heaters (3 elements) End-use Efficiency (fuel - based space and water heating) Peak winter- load awareness campaign Private generators WINTER PEAK AWARENESS CAMPAIGNS Objectives Raise awareness in off-grid communities to use electricity wisely during winter and more so during peak periods. Advertising campaign Personnalized mailings Posters in key locations Radio messages on local radio stations

PEAK WINTER AWARENESS Innu Naskapi Inuktitut Français

Thank you for your attention !