The provinces of Quebec and Ontario have signed a new memorandum of understanding for energy exchange between them to assist each other during peaks in electricity consumption.

The previous agreement covered the period from 2017 to 2023 and included Ontario purchasing the equivalent of 2 terawatt hours annually from "Hydro Quebec," the public electricity authority in Quebec. This specific part regarding the purchase of electricity is absent from the new memorandum of understanding.

In recent years, Ontario Premier Doug Ford has repeatedly stated that his province would not purchase electricity from Quebec because it has a surplus of energy.

Ontario's Minister of Energy, Todd Smith, stated that the new energy agreement is simply an exchange, with no payments from either side, and that the energy exchange could begin next winter.

Smith added that it is expected that the energy operators in the two provinces, "Hydro Quebec" in Quebec and the "Independent Electricity System Operator" (IESO) in Ontario, will exchange up to 600 megawatts of energy annually depending on demand peaks.

The Ontario Minister of Energy also pointed out that energy demand in his province increases in the summer, largely due to the use of air conditioning on hot days.

In Quebec, energy needs peak in the winter, primarily due to electric heating on cold days.

"The agreement is simply logical for both sides," said the Ontario Minister of Energy in an interview with the Canadian Press.

Smith noted that the agreement between the two neighboring provinces works well because their consumption peaks occur at different times.

Ontario generates most of its electricity in nuclear power plants, while the vast majority of electricity in Quebec comes from hydroelectric dams.

The duration of the agreement is ten years, with reviews to adjust energy quantities based on usage.