Gas from Renewable Sources
All the answers to your questions about gas from renewable sources
Gas from Renewable Sources
What is renewable energy?
Renewable energy is any source of energy that can be renewed naturally fast enough to be considered inexhaustible within the human time scale.
What are the sources of renewable energy?
- Biogas (Renewable natural gas)
- Solar power
- Wind power
- Hydropower
- Geothermal power
- Tidal power
What is Gas from Renewable Sources (GRS)?
Gas from renewable sources is renewable gas produced from organic waste (biomass) coming from farms, forests, landfill sites and water treatment plants. It can be used for the same applications as conventional natural gas. This fully renewable energy has several advantages, including a reduction in greenhouse gas (GHG) emissions by avoiding methane emissions linked to burying organic residual materials. Green hydrogen is also considered a renewable source gas.
How does GRS supply work?
When you purchase a certain volume of GRS, it means that amount will be injected into the natural gas distribution system. Once injected, GRS gets mixed in with the traditional natural gas that is already in the distribution system supplying our customers. There is no separate GRS distribution system whereby GRS gets directly delivered to customers. Purchasing GRS means buying the green attributes of that product.
What are the advantages of GRS for the planet?
- Completely renewable
- Replaces fossil energy with renewable energy
- Avoids methane emissions from buried organic waste
What are the advantages of GRS specifically for consumers?
- Voluntary and flexible: for now, anyone buying GRS does so on a voluntary basis. Customers can choose to take 1% to 100% of their gas consumption as GRS.
- Clean and eco-friendly: GRS enables customers to reduce their carbon footprint and take action.
- No change in equipment! This energy source is distributed and used in the same way as conventional natural gas, but it’s green!
- Cancellation: It’s easy to cancel your GSR membership at any time by calling 819-771-8321 or emailing gsr@enbridge.com.
Is GRS production considered carbon neutral?
- If renewable sourced gas were not produced, any gas emanating from our household waste would either be released into the atmosphere in the form of methane (which is 25 times more harmful than CO2 during combustion) or incinerated in biomethanation plants, which has the same impact in terms of GHG emissions when the gas is consumed as natural gas.
- To avoid those two scenarios, we give this gas a second life by recovering, cleaning and injecting it into the gas system to replace fossil natural gas. Waste recovery is the perfect example of the circular economy because we use that gas as an energy source. Thus, we can confirm that gas from renewable sources is carbon neutral because it does not contribute to increasing greenhouse gas emissions.
How much gas from renewable sources is injected into the Enbridge Gaz Québec system?
Between 2020 and 2022, Enbridge Gaz Québec injected 1% GRS into its system, and 2% in 2023 and 2024, with the aim of 5% starting in 2025. That percentage is a requirement set by the provincial government, which does not prevent us from increasing it faster if there is sufficient demand and supply.
What percentage of GRS is right for me?
You can choose to designate between 1% and 100% of your consumption at the GRS rate. However, you must understand that the Government of Quebec has asked [1] Enbridge Gaz Québec to deliver 2% of GRS in 2024 and 5% of GRS in 2025. The costs associated with this obligation will be passed on to all customers if the goals above are not reached through voluntary opting in.
Thus, by opting for the GRS rate, you are voluntarily contributing to reaching that goal, and by agreeing to opt for at least 2% per month, or the equivalent of 24% annually for 2024 (monthly percentage of GRS chosen by the customer (%) multiplied by the number of months opted in), you will likely pay off your portion of that obligation. For 2025, it will be necessary to opt in at least 5% per month, or the equivalent of 60% annually to be subtracted from socialization.
If Enbridge Gaz Québec does not manage to sell its customers enough GRS through voluntary opting in and has to bill its customers to meet its obligation, you will be exempted by having opted for 2% per month at the GRS rate in 2024 or 5% per month in 2025.
[1] Règlement concernant la quantité de gaz de source renouvelable devant être livrée par un distributeur : https://www.legisquebec.gouv.qc.ca/fr/document/rc/R-6.01,%20r.%204.3
How is the price of GRS set? Can it fluctuate?
All GRS supply contracts must be approved by the Régie de l’énergie. Enbridge Gaz Québec is pursuing every opportunity to secure competitively priced GRS contracts. Consequently, its annual GRS needs can be met through different green energy producers.
In general, the molecular price of GRS will not fluctuate in a given year because Enbridge Gaz Québec knows the price of its upcoming supplies by the time it sets the molecular price of GRS for that year.
That being said, the GRS rate will vary from quarter to quarter because it takes into consideration adjustment related to the cost of transportation, the molecule of gas and carbon emission credits, which are modified every quarter.
A calculator is available on our Web site at www.enbridgegaz.com to easily estimate the percentage point cost of GRS.
Socialization of gas from renewable sources (GRS)
Why does Enbridge Gaz Québec not bear the additional cost of GRS for all customers?
The costs associated with acquiring GRS stem from Quebec’s Regulation respecting the quantity of gas from renewable sources to be delivered by a distributor, and aims to position Quebec as a leader in the area of renewable energy by placing consumers at the centre of the initiatives. Enbridge Gaz Québec, like every natural gas distributor, is required to deliver a certain quantity of renewable natural gas annually to meet the obligation, and the costs associated with that process must subsequently be recovered from customers.*
*Analyse d’impact réglementaire – Projet de règlement concernant la quantité de gaz naturel renouvelable devant être livrée par un distributeur – Ministère de l’Énergie et des Ressources naturelles (August 2018 and February 2019).
Why was the additional cost of GRS not imposed on all Enbridge Gaz Québec customers from the outset?
Since 2020, we have been offering our customers the chance to contribute to a better environment by opting for the GRS rate. Customers who voluntarily agree to designate part of their consumption at the GRS rate support the GRS case and help reduce GHG and methane emissions. We are confident that over time, recognition of the ecological benefits of renewable sourced gas will enable sufficient customers to opt in voluntarily and cost sharing will no longer be necessary.
Do all Enbridge Gaz Québec customers have to pay these fees?
All residential, commercial, institutional, and industrial customers are subject to the adjustment approved by the Régie de l’énergie. However, customers who have already voluntarily subscribed to the GSR tariff at a minimum rate of 2% per month for 2023 (24% for the entire year) are exempt from the socialization of costs for the year 2025.
How do you calculate the GRS adjustment?
Customers who do not comply with the GSR in 2023 will be billed based on their monthly consumption in 2025, multiplied by the socialization rate of 2.12 ȼ/m³. As Enbridge Gaz Québec purchases the minimum GSR to fulfill its regulatory obligations, the costs that are not recovered from the voluntary sale of GSR volumes in 2023 will be invoiced to the non-voluntary customers in 2023.
If I opted to pay the GRS rate in 2024, do I still have to pay that adjustment?
If you did not participate in the GSR rate of at least 2% from January to December 2023, your 2025 monthly bill will be adjusted for unsold volumes from 2023.
Will I have this adjustment every year?
At year-end, we compare the percentage sold to our obligation and adjust if needed by the next year. For instance, any unsold balance at 2024’s end will be adjusted by January 1, 2026. If all inventory is sold, no cost sharing is required.
How much do I have to opt in for to avoid future socialization?
The Quebec government has mandated Enbridge Gaz Québec to supply 5% renewable gas starting in 2025, up from 2% in 2023 and 2024. By opting for at least 5% monthly from January 2025, you can avoid a GSR rate adjustment in 2027. If you previously chose a lower percentage, Enbridge Gaz Québec recommends increasing it.
Can I contribute more?
Yes, absolutely! Additional contribution remains voluntary and flexible. We invite you to complete the form OR to contact our customer service at 819-771-8321.
Information about the January 1st, 2025 rate adjustment
Starting January 1, 2025, natural gas billing prices have changed. This FAQ explains the updates.
What accounts for the decrease in the price of supply (molecule) of natural gas as of January 1, 2025?
Enbridge Gaz Québec adjusts natural gas prices quarterly to reflect market changes. On January 1, 2025, the price of natural gas rose from 9.83 ȼ/m³ to 9.06 ȼ/m³.
The price of this molecule has decreased by 66% from its peak in July 2022, falling from 26.99 ȼ/m³ to 9.06 ȼ/m³.
We resell gas at cost, with our profits coming from distribution, not resale. Rates are approved by the Régie de l’énergie.
Why has the price of natural gas transportation increased?
The transportation price for natural gas (sales service) will increase from ȼ4.71/m³ to ȼ5.53/m³ as of January 1, 2025. The Dawn-T transportation cost remains unchanged at 0.92 ȼ/m³. Please note that there is no profit made on this component.
Why have distribution rates increased?
The Régie de l’énergie approved an 18% increase in distribution rates for Enbridge Gaz Québec, mainly due to the reallocation of some costs with its parent company Enbridge and inflation. Despite this, customer bills will rise by about 10% because natural gas prices are falling. The distribution price covers the costs of delivering natural gas from Enbridge Gaz Québec to homes or businesses, including network management and maintenance.
Why is the socialization rate increasing in 2025?
Enbridge Gaz Québec will recover the costs of unsold renewable gas through the socialization rate. For 2023, this rate is set at 2.12 ȼ/m³ (up from 1.43 ȼ/m³ last year) and will apply from January 1, 2025, to December 31, 2025. The increase is due to higher costs for purchasing the minimum volume of renewable gas required by regulation. Only customers failing to meet the 2% minimum monthly requirement in 2023 will be billed.
Why is the carbon emission credit decreasing in 2025?
The Régie approved a rate reduction from 10.23 ȼ/m³ to 9.03 ȼ/m³ effective January 1, 2025, due to lower emission rights costs under the Cap-and-Trade System.
Will natural gas remain an excellent energy choice?
Definitely! Natural gas offers a level of comfort unmatched by any other energy source.
How can I reduce my energy consumption?
Enbridge Gaz Québec proposes simple, efficient and practical solutions for reducing your energy consumption, such as the installation of a smart thermostat. In fact, Enbridge Gaz Québec offers $100 to its customers who buy and install one.
Never turn off your thermostat! Instead program it to keep a 3-degree Celsius difference between the temperature you want when you are at home and the one when you are not, or for overnight.
For additional information about our energy efficiency programs, consult our guide on cash incentives.