Article

Hydro-Québec is experiencing a transformer shortage impacting its $50 billion expansion plan to add 5,000 kilometers of transmission lines by 2035. The global demand for transformers has surged due to the energy transition and high electricity consumption from data centers.

Hydro-Québec has secured firm purchase agreements with manufacturers like Hitachi, which is investing $270 million to triple production capacity in Varennes. Despite these efforts, rising costs, partly due to tariffs on copper and aluminum, have led to significant budget overruns in recent projects.