Canada - Tender call for 2,000 MW of wind power: Hydro-Québec accepts 15 bids

Subsequent to the tender call issued on October 31, 2005, for Québec-produced wind power, Hydro-Québec is accepting 15 bids for a total of 2,004 MW. Deliveries will come on stream in stages from 2011 to 2015.

The average price offered by the winning bids is 10.5¢/kWh in total, broken down as follows: 8.7¢/kWh for the wind energy, 1.3¢/kWh for transmission, and an estimated 0.5¢/kWh for balancing service provided by Hydro-Québec Production.

"We're very satisfied with the outcome announced today," said Thierry Vandal, President and Chief Executive Officer of Hydro-Québec. "It ensures a supply of renewable energy at a highly competitive cost for wind power."

The projects will require capital outlays estimated at $5.5 billion, including $1.1 billion for transmission infrastructure. In accordance with a Québec government regulation, all the winning bids meet the following criteria:

· At least 60% of the total cost of each wind farm must be incurred in Québec, and

· At least 30% of the cost of the wind turbines must be incurred in the regional county municipality of Matane and the administrative region of Gaspésie–Îles-de-la-Madeleine.

Hydro-Québec Distribution will draw up the contracts with the project proponents within the next few months. The contracts will then be filed with the Régie de l'énergie for approval. The proponents must obtain the required environmental and municipal permits before starting the work.

Since the launching of the call for tender, Hydro-Québec Distribution has been working with Deloitte Inc. to analyze the bids and to apply the prescribed tendering and contract award procedure.

A map of the project sites are attached to this press release.