Ottawa has announced what they claim to be the most substantial investment in clean energy ever seen in North America. Prime Minister Mark Carney, along with N.L. Premier Tony Wakeham and Quebec Premier Christine Fréchette, revealed the new agreement for Churchill Falls and other hydro projects in Labrador during a meeting in St. John’s.
Wakeham stated, “We are finally turning the page on one of the darkest chapters in our past, and replacing both the notorious 1969 Churchill Falls agreement and the 2024 memorandum of understanding with a better deal for all of us.” The leaders unveiled the details of the new deal against the backdrop of an ocean at Pier 17.
Under this agreement, Ottawa will allocate $10 billion to enhance the Churchill Falls generating station, develop the Gull Island hydroelectric project, construct transmission lines, and introduce a 2,000 MW onshore wind energy project in Labrador. These projects collectively represent a nearly $70 billion investment in clean energy, tripling the current generating capacity of Churchill Falls.
Carney emphasized the significance of this investment, stating, “Tripling the current generation capacity of Churchill Falls to 14,000 megawatts of renewable power exceeds the entire generating capacity of B.C. Hydro and surpasses the output of Bruce Power, the largest nuclear plant on this continent.”
The initiatives are projected to create 23,000 jobs and provide Quebec with a dependable power source while aiding N.L. in generating additional revenue from natural resources to combat its debt issues. Moreover, Newfoundlanders and Labradorians are expected to benefit from reduced electricity costs with a new 15% rebate on their first 2,000 kWh of monthly usage.
Wakeham hailed the new agreement as a “win-win-win” situation, highlighting the improved terms compared to the 2024 memorandum. This revised deal is valid until March 31, 2027, offering increased value for N.L. Hydro and the province. The potential expansion of Churchill Falls and upgrades to the existing facility are part of the agreement, which aims to enhance power generation and transmission capabilities.
Furthermore, the agreement includes provisions for the development of a wind project generating facility, alongside commitments to boost Labrador’s mining industry. Despite uncertainties surrounding the upcoming Quebec election, the leaders expressed confidence in the mutual benefits of the deal for both provinces.