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Dual-energy and energy pricing: another step towards sustainability

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The dual-energy program, launched jointly by Hydro-Québec, Énergir and the Ministère des Ressources naturelles et des Forêts, is designed to reduce greenhouse gas (GHG) emissions while minimizing the impact on winter peak electricity demand. In this article, explore with us the program’s mechanisms, its implications for new construction and existing buildings, and the key points to consider for successful implementation.

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How does the program work?

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The dual-energy program uses two sources of heating: electricity via a heat pump, and natural gas. Up to an outdoor temperature of -12°C (or -15°C depending on the region), electric heating is used at a reduced rate. Below this threshold, heating switches to natural gas, and a dissuasive rate is applied to encourage minimization of electricity consumption. This configuration requires a second heating source, a second electric meter and a control system to switch between the two energy sources. A subsidy covering up to 80% of costs is available to encourage adoption of this system.

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For new buildings?

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Since April 2024, all new connections to Energir must use renewable natural gas (RNG). Although RNG has very low GHG emissions, it is more expensive than conventional natural gas. This additional cost reinforces the appeal of dual-energy, as the efficiency of substituting natural gas with electricity at reduced rates makes the system more cost-effective.

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The two main advantages of dual-energy for new buildings are:

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• Reduced GHG emissions: RNG and reduced-rate electricity reduce the carbon footprint of buildings.
• Increased profitability: Despite the higher cost of RNG, the use of electricity as the main source of heating helps offset costs.

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What about existing buildings?

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For existing buildings, standard natural gas can still be used. However, several factors influence the cost-effectiveness of a dual-energy program. It’s crucial to take into account the current electricity rate and consumption profile, the heating technology in place, and the potential complications of adding a dedicated meter.

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Some points to consider for existing buildings:

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• Dedicated meter for electric heating: Appliances connected to this meter will be billed at the dissuasive rate below the temperature threshold, which may result in additional costs.
• Tariff impacts on the original meter: Meter separation may alter the applicable tariff, power factor or seasonal energy consumption profile.
• Off-peak rates: Standard rates apply, but they may differ from those for the rest of the building, resulting in additional costs in summer.
• Meter installation times by Hydro-Québec: Although installed free of charge by Hydro-Québec, meter installation times can have a significant impact on the project schedule.

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Finally, the dual-energy program represents a promising initiative for reducing GHG emissions and managing Hydro-Québec’s peak demand. However, several factors need to be thoroughly analyzed to ensure its profitability. A feasibility study, offered by our team at TST, is highly recommended to assess the relevance and potential benefits of dual energy in each specific project.

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With a thoughtful, well-informed approach, building owners and managers can take advantage of this innovative program to contribute to a more sustainable future while optimizing their energy costs. Contact us to learn more about dual energy or to carry out a feasibility study!

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