How Québec can support the energy transition of northeastern North America.

• Hydro-Québec can provide annual storage ranging from 3 to 6 TW h for high VRE markets. • Price arbitraging with high VRE markets leads to sustainable changes for hydropower. • Hydropower maintenance flexibility will gain more value with VRE growth. • Revenues from price arbitraging with high VRE markets remain low. Northeastern North America is transitioning rapidly from fossil fuel generation to variable renewable energy (VRE) sources such as wind and solar. Their integration into electricity grids poses challenges in terms of matching supply with demand. Once VRE represent a large share of installed capacity, intermittency and variability of their production will become a major issue. Hydro-Québec, the public electric utility in the Canadian province of Québec, has a large hydropower generation fleet. Its storage capacity enables adjusting hydro production, when the system needs it, to support VRE integration. In this paper, potential impacts of VRE growth within neighbouring grids are simulated through operational production management models. The results show that Hydro-Québec has the potential to facilitate this energy transition but that the current electricity market structure does not provide incentives for an optimal contribution. [ABSTRACT FROM AUTHOR]