Hydro-Quebec Swot

Strengths

Hydro-Quebec is Canada’s largest electricity generation, transmission, and distribution network and the largest producer of hydroelectric power in North America (Line Dube, 2007). Its mass allows for it to operate with economies of scale in generation and distribution. Research and construction of new wind and hydroelectric projects is an expensive endeavor made possible by the size of the company. In 2007, Hydro-Quebec had 87 generating stations which consisted of hydroelectric, nuclear, thermal, and wind farm technologies.

Its size and the nature of hydroelectric power allow Hydro-Quebec to sell its energy at one of the cheapest rates in North America. As of April, 2007, the average rate per KWh for a resident of Montreal, QC was 6.68 cents while the average New Yorker paid 23.38 cents per KWh. (Hydro-Quebec, 2007).

The company uses some of its resources to educate Canadians on energy conservation. With less electricity being consumed in Canada, it is free to export energy to the United States, usually at a much higher rate. Exporting is advantageous because of the energy needs of the two countries. While the bulk of Canada’s energy consumption occurs in the winter months to heat homes, the United States requires most of its energy during the summer months. Since the company’s costs are not dependent on fluctuating fossil fuel prices, it can enter into long term exporting contracts without the risk of increasing production costs.

Renewable energy is a focus for the company. With growing concerns about climate change, Hydro-Quebec is in a good position, with 97.2% of its net output coming from hydroelectric plants (Hydro-Quebec, 2007). Hydroelectric plants produce clean energy by using running water to turn turbines and produce electricity. The company has also invested in wind energy and had one wind farm operational in 2007.

Hydro-Quebec is the only electric utility company in North America to operate a large scale research...