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Hydro-Québec Distribution has done a preliminary analysis of the pricing formulas in the bids received in response to the call for tenders for the purchase of 1000 MW of wind power.
The average price of bids, including the cost of transmission and power balancing, is 10 cents/kWh in 2007, increasing with inflation thereafter.
The capacity factor guaranteed by the project proponents averages 30%, which corresponds to an annual quantity of 2.6 TWh as at December 1, 2011. There are penalties for deliveries lower than the amount guaranteed in the bid.
Details relative to preliminary analysis
In addition to the quoted energy price of 8.1 cents/kWh, Hydro-Québec Distribution's total cost of purchase must include the cost of modifying the transmission system and of power balancing taking into account Hydro-Québec TransEnergie's expected cost, which could be as much as $400 million to integrate and connect the new wind power facilities. The transmission cost would be 1 cents/kWh.
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