Hydro-Québec Solar Tender Oversubscribed, Signals Renewed Provincial Push
Event summary
- Hydro-Québec received 60 bids totaling 481 MW in response to a tender for 300 MW of solar energy, launched May 6, 2025.
- The bids cover 14 of Québec’s administrative regions, with individual projects capped at 25 MW.
- Approximately 40% of the submitted projects involve local municipalities or Indigenous communities.
- Hydro-Québec will announce the selected projects in Q1 2027, with electricity delivery required by December 1, 2029.
- Raymond Chabot Grant Thornton is acting as an advisor to ensure transparency in the selection process.
The big picture
This tender represents a renewed commitment from Hydro-Québec to expand solar energy generation, aligning with Québec’s broader decarbonization goals. The oversubscription highlights strong developer interest in the provincial market, but also introduces a selection risk. The inclusion of Indigenous communities underscores a shift towards more inclusive energy development models, which may require adjustments to traditional project finance and governance structures.
What we're watching
- Selection Criteria
- The significant oversubscription (481 MW bid for 300 MW) will force Hydro-Québec to prioritize bids based on competitiveness, potentially favoring projects with lower costs or superior local economic benefits.
- Indigenous Partnerships
- The high proportion of projects involving Indigenous communities suggests a strategic emphasis on reconciliation and local economic development, which could influence project selection and long-term operational dynamics.
- Permitting Risk
- Developers will face permitting and authorization hurdles after contract signing, and delays in securing these approvals could impact the December 2029 delivery deadline.
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