Hydro-Québec Imports Exceed Exports in Third Quarter

Hydro-Québec is experiencing a significant shift in its electricity trade dynamics, marking the first instance where imports outpace exports. This transition arises from a sustained reduction in water reserves, leading to changes in operational strategies.

Hydro-Québec’s Import-Export Balance in Q3

As of the third quarter, Hydro-Québec has shifted to being a net importer of electricity. Maxime Aucoin, the executive vice president and chief financial officer, revealed that this adjustment is necessitated by three consecutive years of low hydraulic conditions. This has compelled the company to reduce its export capacity significantly.

Financial Overview

In the third quarter, Hydro-Québec reported a striking 61% increase in net profits, largely due to a one-time accounting gain of $256 million from selling its 20% stake in Innergex. Overall profits for the July-September period were $553 million, up from $344 million during the same timeframe last year.

• Net electric imports exceeded exports for the year, with Hydro-Québec importing 10 terawatt-hours.
• Average import price stood at 5 cents per kilowatt-hour.
• Exports amounted to 8 terawatt-hours at an average price of 15 cents per kilowatt-hour.

Despite these profits, it’s important to note that the stake in Innergex was sold at a loss. Hydro-Québec had initially acquired the shares at $19.08 each in 2020, but sold them for $13.75. This sale resulted in a net profit of about $250 million, following previous write-downs on their investment.

Investment and Future Outlook

Hydro-Québec continues to focus heavily on expanding its infrastructure and plans to invest significantly in interconnections with the United States. For the first nine months of 2025, investments reached $5.5 billion, an increase of $1 billion compared to the previous year.

The company is on track to achieve a total investment of $8 billion in 2025. Aucoin affirmed that this goal remains realistic and achievable, reflecting Hydro-Québec’s commitment to enhancing its operational capacity and sustainability.

Conclusion

The ongoing imbalance between Hydro-Québec’s imports and exports amid challenging hydraulic conditions underscores the company’s adaptability. Continued investment in infrastructure and strategic planning will be crucial as it navigates these changes in the energy market.