Provincial utility Hydro-Quebec has signed a 30-year power purchase agreement (PPA) with Innergex Renewable Energy Inc., Innu Council of Pessamit and the regional county municipality of Manicouagan for a 300-megawatt wind project.

The deal is for the Peshu Napeu wind project, to be located in the Côte-Nord region of Quebec. Expected to be commissioned in 2029, the project was chosen by Hydro-Quebec in January 2024 as part of its call for tenders.

Innergex is the developer.

The Innu Council of Pessamit will take a 39 per cent stake, Innergex a 38 per cent, and the municipality of Manicouagan a 23 per cent stake.

In a PPA, a customer buys energy at a pre-set price for a set number of years from an electricity generator. The 30-year PPA will be indexed to the Consumer Price Index, which a release says ensures the project’s financial stability and will protect against inflation.

"As the first wind project to be majority-owned by the Innu First Nation of Pessamit, we are very proud of the historic nature of the signing of this agreement," Michel Letellier, president and CEO of Innergex, said in a release issued by the Longueuil, Que.-based company.

A sustainable Indigenous partnership

The agreement emphasizes involvement of Indigenous Canadians. Marielle Vachon, chief of the Innu First Nation of Pessamit, said having an interest in Peshu Napeu will ensure it is developed with respect for the community and will promote economic and social development.

It will be located in the municipality of Manicouagan, an almost 40,000-square-kilometre area that is approximately 400 kilometres east of Quebec City. The ancestral territory of the Innu First Nation of Pessamit lies in Manicouagan.

“The signing of this agreement by our respective communities marks an important milestone, not only in the development of the Peshu Napeu wind project, but also in our shared commitment to the energy transition and sustainable development," Marcel Furlong, prefect of the regional county municipality of Manicouagan, said.

Joining Hydro-Quebec’s bids

Peshu Napeu is the largest project in a call for tenders announced in March 2023 by Hydro-Quebec for 1,550 megawatts of capacity in eastern Quebec. One of eight projects from five developers, its 300 megawatts makes it the one with the largest capacity.

Electricity deliveries must begin between Dec. 1, 2027, and Dec. 1, 2029, according to Hydro-Quebec.

The guaranteed start for Peshu Napeu is set at Dec. 1, 2029, according to a document from Hydro-Quebec. But Innergex says it will be subject to “the execution of contracts with suppliers, and to the successful completion of permit application processes and regulatory requirements.”