The largest clean energy investment in North American history has been declared by Ottawa. Prime Minister Mark Carney, along with N.L. Premier Tony Wakeham and Quebec Premier Christine Fréchette, made the announcement 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.”
At Pier 17, against a scenic ocean backdrop, the leaders revealed details of the new agreement. Ottawa will provide $10 billion for upgrading and expanding the Churchill Falls generating station, developing the Gull Island hydroelectric project, constructing transmission lines, and implementing a 2,000 MW onshore wind energy project in Labrador. These projects, valued at nearly $70 billion, represent the largest clean energy investment in North American history and will almost triple the current generating capacity of Churchill Falls.
Carney highlighted the significance of the projects, stating, “Tripling the current generation capacity of Churchill Falls to that 14,000 megawatts of renewable power — that’s more than the entire generating capacity of B.C. Hydro. It’s more than double the output of Bruce Power, the largest nuclear plant on this continent.” The initiatives are expected to create 23,000 jobs.
The deal aims to provide Quebec with secure power while enabling N.L. to generate additional revenue from natural resources to address its debt issues. It also includes a 15% rebate for N.L. ratepayers on their first 2,000 kWh of electricity used per month, saving households an average of $351 annually.
The new agreement between Newfoundland and Labrador Hydro and Hydro-Quebec presents updated figures compared to the 2024 memorandum of understanding, increasing N.L.’s value from $36 billion to $49 billion in net present value. The agreement is effective until March 31, 2027, with a potential extension upon mutual agreement.
The projects will facilitate transmission access of 985 megawatts through Quebec, allowing Newfoundland and Labrador to sell electricity to markets like Massachusetts and New York. The deal ensures that Newfoundlanders and Labradorians have control over their resources, offering economic development opportunities.
The new agreement includes upgrades to the Churchill Falls facility, boosting its capacity by 23.5%, with the potential for further increases with the completion of the wind project. Ottawa is also providing a loan guarantee for the Gull Island construction costs and supporting the development of a wind project in Labrador.
The increased power capacity is expected to benefit Labrador’s mining industry, with additional funding allocated for enhancing development in the region. Concerns about the deal’s continuity in the upcoming Quebec election were addressed, emphasizing the mutual benefits for both provinces.
As the agreement secures jobs and megawatts for Quebec and Newfoundland, the leaders underscored the positive impact on the economy. The deal signifies progress towards sustainable energy development and economic growth for the region.