RESEARCH

When Water Heaters Double as Power Plants

Smart heaters cut peak demand by 300 MW, showing how homes can stabilise Canada's grid

17 Jul 2025

News article

Hydro-Québec is betting on an unlikely tool to keep its grid stable: the household water heater. In July the utility said it would add "smart" versions of the device to its demand-response programme. The aim is to trim as much as 300 megawatts of winter peak demand, roughly the load of a mid-sized city, without building new plants or buying imports.

The scheme builds on earlier trials with smart thermostats, which already cut heating use during cold snaps. Water heaters add a different advantage. They can store heat for hours, allowing consumption to be shifted without households noticing. At scale, thousands act like a distributed battery, smoothing demand when the grid is stretched.

The idea reflects a broader rethink of the energy system: everyday appliances as hidden resources. "It's a resource hiding in plain sight," says one engineer involved. Turning such devices into grid assets could make electricity systems cheaper and cleaner.

Challenges remain. Cybersecurity and data privacy need attention, and the utility must ensure that comfort is not compromised. But analysts argue the benefits outweigh the risks. If Quebec's model works, other provinces may copy it, giving demand-side management fresh momentum across Canada.

The gains could be large. Cutting peaks means fewer costly power plants, less reliance on fossil fuels and more room for renewable sources. For Hydro-Québec the programme is more than a technical trial. It shows how even the most ordinary household machine can help build a more flexible and greener grid.

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