{"id":767,"date":"2026-04-19T15:26:32","date_gmt":"2026-04-19T20:26:32","guid":{"rendered":"https:\/\/benoit.marcoux.ca\/blog\/?p=767"},"modified":"2026-04-19T15:26:33","modified_gmt":"2026-04-19T20:26:33","slug":"is-the-battery-of-the-northeast-being-short-circuited","status":"publish","type":"post","link":"https:\/\/benoit.marcoux.ca\/blog\/is-the-battery-of-the-northeast-being-short-circuited\/","title":{"rendered":"Is the \u201cBattery of the Northeast\u201d being short-circuited?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image.png\"><img loading=\"lazy\" decoding=\"async\" width=\"908\" height=\"510\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image.png\" alt=\"\" class=\"wp-image-768\" srcset=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image.png 908w, https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image-300x169.png 300w, https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image-768x431.png 768w, https:\/\/benoit.marcoux.ca\/blog\/wp-content\/uploads\/2026\/04\/image-624x350.png 624w\" sizes=\"auto, (max-width: 908px) 100vw, 908px\" \/><\/a><\/figure>\n\n\n\n<p id=\"ember533\">As early as 2020, Premier <a href=\"https:\/\/www.linkedin.com\/in\/fran%C3%A7ois-legault-pm?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAAGBX0TcBk3XUP3Ig3paZjc_8IALsvmTvjNg\">Fran\u00e7ois Legault<\/a> described Qu\u00e9bec as the \u201cgreen battery of Northeastern America\u201d, referring to Hydro-Qu\u00e9bec\u2019s large reservoirs.<\/p>\n\n\n\n<p id=\"ember534\">It is a powerful image. And for a long time, it was an accurate one.<\/p>\n\n\n\n<p id=\"ember535\">It captured a simple reality: <a href=\"https:\/\/www.linkedin.com\/company\/hydro-quebec\/\">Hydro Qu\u00e9bec<\/a> could store energy, wait for the right moments, and sell when prices rose.<\/p>\n\n\n\n<p id=\"ember536\">But that image belongs to a world in which flexibility was scarce.<\/p>\n\n\n\n<p id=\"ember537\">That world is changing.<\/p>\n\n\n\n<p id=\"ember538\">With batteries being deployed rapidly across the U.S. grid, one question now arises:<\/p>\n\n\n\n<p id=\"ember539\">What if that battery were being short-circuited?<\/p>\n\n\n\n<p id=\"ember540\">Not electrically. Economically.<\/p>\n\n\n\n<p id=\"ember541\">(LinkedIn: <a href=\"https:\/\/www.linkedin.com\/pulse\/battery-northeast-being-short-circuited-benoit-marcoux-8slae\">https:\/\/www.linkedin.com\/pulse\/battery-northeast-being-short-circuited-benoit-marcoux-8slae<\/a>)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember542\">The real model, in 2025<\/h2>\n\n\n\n<p id=\"ember543\">To understand the risk, we need to start with the numbers.<\/p>\n\n\n\n<p id=\"ember544\">In 2025, Hydro-Qu\u00e9bec:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>exported <strong>11.8 TWh at 14.5\u00a2\/kWh<\/strong>, or about C$1.7\u00a0billion in revenue;<\/li>\n\n\n\n<li>imported <strong>15.2 TWh at 7.6\u00a2\/kWh<\/strong>, or about C$1.15\u00a0billion in costs.<\/li>\n<\/ul>\n\n\n\n<p id=\"ember546\">So it <strong>imported more than it exported<\/strong>.<\/p>\n\n\n\n<p id=\"ember547\">And yet, it still made money.<\/p>\n\n\n\n<p id=\"ember548\">On the order of <strong>C$500&nbsp;million to C$600&nbsp;million<\/strong> on those transactions.<\/p>\n\n\n\n<p id=\"ember549\">That is the central point.<\/p>\n\n\n\n<p id=\"ember550\">Hydro-Qu\u00e9bec does not make its money by exporting a lot. It makes its money by exporting at the right time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember551\">What that means<\/h2>\n\n\n\n<p id=\"ember552\">Hydro-Qu\u00e9bec is not just an exporter.<\/p>\n\n\n\n<p id=\"ember553\">It is an arbitrage player.<\/p>\n\n\n\n<p id=\"ember554\">Its model is simple:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>buy when prices are low;<\/li>\n\n\n\n<li>sell when prices are high;<\/li>\n\n\n\n<li>capture the spread.<\/li>\n<\/ul>\n\n\n\n<p id=\"ember556\">That is where the profit comes from.<\/p>\n\n\n\n<p id=\"ember557\">Not from volume. From timing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember558\">What batteries change<\/h2>\n\n\n\n<p id=\"ember559\">A recent Canary Media article on New England shows that battery deployment has entered a new phase: projects in the <strong>hundreds of megawatts<\/strong> are now moving ahead, with <strong>175&nbsp;MW<\/strong> and <strong>250&nbsp;MW<\/strong> facilities already online, and a <strong>700&nbsp;MW<\/strong>project in development.<\/p>\n\n\n\n<p id=\"ember560\">This is no longer marginal. These are system-shaping assets.<\/p>\n\n\n\n<p id=\"ember561\">Most importantly, these batteries target exactly the same value Hydro-Qu\u00e9bec has been capturing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>they charge when prices are low;<\/li>\n\n\n\n<li>they sell when prices are high;<\/li>\n\n\n\n<li>they operate during peak hours, when the value is highest.<\/li>\n<\/ul>\n\n\n\n<p id=\"ember563\">In other words, they do not complement Hydro-Qu\u00e9bec\u2019s model. They compete with it directly.<\/p>\n\n\n\n<p id=\"ember564\">Their business model also relies on market arbitrage, supported by public policy and by a favourable environment of high prices and growing demand.<\/p>\n\n\n\n<p id=\"ember565\">These batteries do exactly what Hydro-Qu\u00e9bec does, but locally, in the Northeast states.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember566\">The core of the model is under attack<\/h2>\n\n\n\n<p id=\"ember567\">Let us restate the equation:<\/p>\n\n\n\n<p id=\"ember568\"><strong>profit ? (exports \u00d7 high price) ? (imports \u00d7 low price)<\/strong><\/p>\n\n\n\n<p id=\"ember569\">If batteries:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reduce peaks;<\/li>\n\n\n\n<li>raise off-peak prices;<\/li>\n\n\n\n<li>compress spreads;<\/li>\n<\/ul>\n\n\n\n<p id=\"ember571\">then they directly reduce profit.<\/p>\n\n\n\n<p id=\"ember572\">What they short-circuit is not hydropower itself.<\/p>\n\n\n\n<p id=\"ember573\">It is the price spread that made the model so valuable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember574\">Hydro-Qu\u00e9bec is not being replaced<\/h2>\n\n\n\n<p id=\"ember575\">Still, we should avoid the wrong conclusion.<\/p>\n\n\n\n<p id=\"ember576\">Batteries do not replace reservoirs.<\/p>\n\n\n\n<p id=\"ember577\">They are excellent over a few hours. Much less so over several days. Even less so across seasons.<\/p>\n\n\n\n<p id=\"ember578\">Hydro-Qu\u00e9bec therefore retains an essential role.<\/p>\n\n\n\n<p id=\"ember579\">But that role is changing.<\/p>\n\n\n\n<p id=\"ember580\">Less:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>daily arbitrage;<\/li>\n\n\n\n<li>frequent and predictable revenue.<\/li>\n<\/ul>\n\n\n\n<p id=\"ember582\">More:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>value during rare events;<\/li>\n\n\n\n<li>long-term value tied to duration.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ember584\">Conclusion<\/h2>\n\n\n\n<p id=\"ember585\">The \u201cBattery of the Northeast\u201d remains a useful image.<\/p>\n\n\n\n<p id=\"ember586\">But it describes the source of value less and less well.<\/p>\n\n\n\n<p id=\"ember587\">Batteries are not replacing Hydro-Qu\u00e9bec. They are redefining the part of its model that used to generate returns most easily.<\/p>\n\n\n\n<p id=\"ember588\">The challenge facing Hydro-Qu\u00e9bec CEO <a href=\"https:\/\/www.linkedin.com\/in\/claudine-bouchard-asc-a02abb11\/\">Claudine Bouchard, ASC<\/a> is enormous. She must lead the largest buildout in Hydro-Qu\u00e9bec\u2019s history at the very moment when the value once captured by the \u201cBattery of the Northeast\u201d is beginning to migrate toward batteries deployed locally, closer to the markets.<\/p>\n\n\n\n<p id=\"ember590\">The shock is not physical. It is economic.<\/p>\n\n\n\n<p id=\"ember591\">And it has already begun.<\/p>\n\n\n\n<p><strong>References<\/strong><br><a href=\"https:\/\/www.canarymedia.com\/articles\/batteries\/big-grid-batteries-new-england\">https:\/\/www.canarymedia.com\/articles\/batteries\/big-grid-batteries-new-england<\/a><br><a href=\"https:\/\/www.hydroquebec.com\/data\/documents-donnees\/pdf\/hq-rapport-annuel-2025-anglais.pdf\">https:\/\/www.hydroquebec.com\/data\/documents-donnees\/pdf\/hq-rapport-annuel-2025-anglais.pdf<\/a><\/p>\n\n\n\n<p><\/p>\n<div style=\"margin-top:2em;\">\r\n      Shortlink:\r\n    <a href=\"https:\/\/https:\/\/benoit.marcoux.ca\/blog\/is-the-battery-of-the-northeast-being-short-circuited\/\">https:\/\/benoit.marcoux.ca\/blog\/is-the-battery-of-the-northeast-being-short-circuited\/<\/a>\r\n  <\/div>\r\n\r\n<div id=\"eebsocial\" style=\"margin-top:1em;\">\r\n          <a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2F\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/twitter-32.png\" title=\"Tweet this link\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2F\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/facebook-32.png\" title=\"Share on Facebook\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https%3A%2F%2F&title=Is the \u201cBattery of the Northeast\u201d being short-circuited?\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/linkedin-32.png\" title=\"Share on LinkedIn\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/api.whatsapp.com\/send?text=https%3A%2F%2F\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/whatsapp-32.png\" title=\"Share on WhatsApp\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.pinterest.com\/pin\/create\/button\/?url=https%3A%2F%2F&media=&description=Is the \u201cBattery of the Northeast\u201d being short-circuited?\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/pinterest-32.png\" title=\"Share on Pinterest\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.reddit.com\/submit?url=https%3A%2F%2F&title=Is the \u201cBattery of the Northeast\u201d being short-circuited?\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/reddit-32.png\" title=\"Share on Reddit\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/t.me\/share\/url?url=https%3A%2F%2F&text=Is the \u201cBattery of the Northeast\u201d being short-circuited?\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/telegram-32.png\" title=\"Share on Telegram\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.tiktok.com\/share?url=https%3A%2F%2F\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/tiktok-32.png\" title=\"Share on TikTok\" alt=\"\" \/>\r\n<\/a>\r\n<a href=\"https:\/\/www.instagram.com\/?url=https%3A%2F%2F\" target=\"_blank\">\r\n    <img decoding=\"async\" src=\"https:\/\/benoit.marcoux.ca\/blog\/wp-content\/plugins\/wp-url-shorten\/\/icons\/instagram-32.png\" title=\"Share on Instagram\" alt=\"\" \/>\r\n<\/a>\r\n\r\n    \r\n   \r\n  <\/div>","protected":false},"excerpt":{"rendered":"<p>As early as 2020, Premier Fran\u00e7ois Legault described Qu\u00e9bec as the \u201cgreen battery of Northeastern America\u201d, referring to Hydro-Qu\u00e9bec\u2019s large reservoirs. It is a powerful image. And for a long time, it was an accurate one. It captured a simple reality: Hydro Qu\u00e9bec could store energy, wait for the right moments, and sell when prices [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,39,38],"tags":[],"class_list":["post-767","post","type-post","status-publish","format-standard","hentry","category-energy-storage","category-quebec-canada","category-quebec"],"_links":{"self":[{"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/posts\/767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/comments?post=767"}],"version-history":[{"count":1,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/posts\/767\/revisions"}],"predecessor-version":[{"id":771,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/posts\/767\/revisions\/771"}],"wp:attachment":[{"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/media?parent=767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/categories?post=767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/benoit.marcoux.ca\/blog\/wp-json\/wp\/v2\/tags?post=767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}