**Boston**: Hydro-Quebec halts electricity exports to New England, raising reliability concerns amid international trade tensions and fluctuating weather. While the region has electricity surpluses, the situation may impact upcoming hydropower agreements and energy policy as tariffs linger and local production capacities are evaluated.
In recent developments concerning the electricity supply for New England, Hydro-Quebec has ceased its exports into the region’s wholesale market, a significant event that has raised questions about the reliability of the power source, particularly amid the backdrop of international trade tensions.
Starting last Thursday, there has been virtually no electricity flowing from Hydro-Quebec into New England on the primary transmission line. The halt in exports coincides with the introduction of tariffs by the Trump administration on numerous Canadian imports, which took effect on March 4. Despite this timing, Hydro-Quebec’s chief operating officer for US operations, Serge Abergel, clarified in an interview with The Boston Globe that the interruption was primarily due to weather conditions rather than international trade disputes. “Our current stance on the market is price driven. The warmer weather of the past few days has brought lower prices, which explains our strategy,” Abergel stated.
Traditionally, as temperatures rise in spring, electric prices tend to drop, and Hydro-Quebec’s absence from the market during this time is unusual. The company last exported power to New England on March 6, with any electricity flowing through its infrastructure since then coming from neighbouring regions rather than directly from Quebec.
Fortunately, the region’s grid operator, ISO New England, has reported a surplus of electricity at present, mitigating any immediate adverse impacts from the loss of Hydro-Quebec’s supply. However, the situation raises concerns particularly as Massachusetts utilities have recently signed agreements to purchase hydropower from Quebec via the New England Clean Energy Connect power line. This project, which runs from the Canadian border to Lewiston, Maine, has faced delays and cost overruns, now amounting to approximately $1.5 billion, which will ultimately burden ratepayers.
The ongoing tension between the United States and Canada, especially concerning tariffs, has compounded uncertainties. Currently, it is unclear if hydroelectric power from Canada would be subject to the 10% energy tariff imposed by the Trump administration or the potential 25% tariff on a wider range of Canadian imports. The administration has temporarily paused these tariffs until April 2, contingent upon compliance with a 2018 trade agreement involving the US, Canada, and Mexico.
As these developments unfold, local government officials and electricity market stakeholders are contemplating the ramifications. Massachusetts Governor Maura Healey has characterized the hydroelectricity project as a potential source of savings for residents, yet Quebec Premier François Legault has suggested that the financial burden of tariffs might be passed on to Massachusetts if trade disputes persist before new contracts are implemented.
Dan Dolan, president of the New England Power Generators Association, noted that electricity imports from Hydro-Quebec have already declined due to drought exacerbating conditions in the province and rising domestic electricity demand. Dolan remarked that this situation highlights the necessity for regional policymakers to focus on building and maintaining electricity generation facilities locally. He pointed out the reliance on natural gas as a crucial component of the state’s electricity infrastructure, particularly as environmental concerns have stalled the expansion of pipelines that would enhance domestic gas supply.
In summary, the recent suspension of Hydro-Quebec’s electricity exports brings to light significant concerns regarding the reliability of clean energy sources in the region, particularly in the face of international trade disputes and variable weather conditions. As Massachusetts moves forward with its energy plans, the evolving landscape of tariffs and local production capacities will play a crucial role in shaping the future of energy policy in New England.
Source: Noah Wire Services
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