Article

Hydro-Québec is facing a shortage of transformers affecting its major $50 billion investment plan to expand its transmission network by 5,000 kilometers by 2035. This shortage is attributed to a global surge in demand driven by the energy transition and data centers' electricity needs.

To secure necessary transformers, Hydro-Québec has established firm purchase agreements with manufacturers including Hitachi, which is investing $270 million to enhance production in Varennes. However, rising costs of transformers, influenced by tariffs on materials, have resulted in significant budget overruns, including an additional $1 billion for projects aimed at exporting electricity to Boston and New York. The Régie de l'énergie has expressed concern over the rising costs of Hydro-Québec's expansion projects.