Québec and Ontario Sign Historic Electricity Trade Agreement

Premier Philippe Couillard of Québec and Premier Kathleen Wynne of Ontario today attended the official signing of the historic electricity trade agreement between Hydro-Québec and the Independent Electricity System Operator of Ontario (IESO  in Montreal today.

Under this agreement, the IESO will purchase a total of 14 terawatt hours (TWh) of electricity from Hydro-Québec over a seven-year period from 2017 to 2023.

For Hydro-Québec, this agreement is the largest contract since market deregulation. The Government of Québec introduced the Energy Policy 2030 with the aim of making Québec a North American leader in renewable energy and energy efficiency.

Ontario will reduce the cost of electricity to its consumers by $70 million compared to its previous plan by importing 2 TWh of hydroelectric power each year from Québec to replace the use of natural gas.

Together, Ontario and Québec form Canada’s largest economic region, accounting for about 56 per cent of GDP and 53 per cent of interprovincial trade. The Premiers of the two provinces clearly see this as a win-win situation.

Kathleen Wynne, Premier of Ontario said ” We are thrilled to finalize this historic agreement with Québec, our neighbour and strong partner. Combining our energy resources through this agreement complements a range of initiatives already underway in Ontario to provide reliable and more affordable electricity. The agreement also helps our shared fight against climate change by reducing Ontario’s electricity sector greenhouse gas (GHG) emissions by an estimated 1 million tonnes per year. We will continue to work with Québec to strengthen our partnership, provide strong leadership from the centre of Canada and create good jobs.”

Philippe Couillard, Premier of Québec commented, “Québec’s energy resources must be used to promote the transition to a low-carbon 21st century economy. Hydroelectricity is a clean, renewable, affordable energy source. This agreement with our Ontario neighbour is a concrete example of an economic partnership that helps fight climate change. This agreement on the sale of energy, which will benefit both of our governments, is made possible by the complementary nature of our electricity systems. Québec will pursue its efforts to increase its exports to neighbouring provinces and American states.”


Manning Environmental Law is a Canadian law firm based in Toronto, Ontario. Our practice is focussed on environmental law, energy law and aboriginal law. 

Paul Manning is a certified specialist in environmental law. He has been named as one of the World’s Leading Environmental Lawyers by Who’s Who Legal: 2016.

As always, these posts  are provided only as a general guide and are not legal advice. If you do have any issue that requires legal advice please get in touch. Our contact details can be found here

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