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ENERGY
Securing Québec’s clean energy transition
For Québec, the agreement secures long-term access to reliable, lowcost clean power necessary to fuel economic growth and support the
province’s transition away from fossil fuels.
Under the framework, Hydro-Québec guarantees energy supplies
from Churchill Falls until 2077 at a competitive rate of 6 cents/kWh.
This price is three times lower than projected production costs beyond
2035, which are estimated at 17 cents/kWh.
Prime Minister Mark Carney announces a historic agreement to upgrade and expand
the Churchill Falls Generating Station as Newfoundland and Labrador Premier Tony
Wakeham and Québec Premier Christine Fréchette look on.
The agreement grants Hydro-Québec access to a total potential of over
10,000 MW of electricity from Labrador—nearly double the current capacity—including 6,915 MW of committed supply and 3,850 MW under
study for future developments.
Premier of Québec Christine Fréchette emphasized the strategic
necessity of the deal. “In the current geopolitical context, it is vital for
every nation to secure its energy future,” Fréchette said. “Through this
partnership, we are supporting the energy transition and enabling the
growth of our economy through renewable energy, while ensuring our
energy independence.”
Claudine Bouchard, President and CEO of Hydro-Québec, added that
the collaboration “paves the way for the largest renewable energy project
in North America and will contribute to Quebec’s prosperity for generations to come.”
Federal financing, critical minerals, and indigenous reconciliation
A critical anchor of the agreement is the federal government’s $10 billion
昀椀nancial commitment, which incorporates $3.5 billion in direct NPV value for Newfoundland and Labrador. Federal investments include taking
up to a 40 per cent equity stake in an adjoining Labrador wind project,
providing loan guarantees to de-risk Gull Island construction, and committing $1 billion toward the Labrador West transmission expansion.
The expansion of the power grid is directly tied to unlocking the
critical mineral potential of the Labrador Trough, a world-class mining
region straddling the Newfoundland and Labrador and Québec border
that contains high-purity iron ore and graphite. To accelerate development, the federal government referred the Labrador Trough Clean Power,
Critical Minerals and Infrastructure Corridor—as well as the Gull Island
and Churchill Falls upgrades—to its Major Projects O昀케ce (MPO).
The MPO will streamline federal 昀椀nancing, accelerate regulatory and
permitting timelines, and support strategic pre-development projects under Natural Resources Canada’s First and Last Mile Fund (FLMF). These
include electri昀椀cation studies for the Kami Iron Mine near Wabush,
transmission infrastructure for Focus Graphite’s Lac Knife project, and
expanding handling capacity at SFP Pointe-Noire.
“There are hundreds of billions of dollars in critical minerals in Labrador that we have been unable to develop due to lack of power,” noted
Lloyd Parrott, Minister of Mines and Energy for Newfoundland and
Labrador. “With this new deal, we can open up these opportunities and
create tens of thousands of new jobs.”
Underpinning the entire framework is a commitment to economic
reconciliation. The federal government and the Government of Newfoundland and Labrador have engaged in active dialogues with the Innu
Nation of Labrador to establish co-investment opportunities, ensuring
Indigenous communities participate as full, equity-owning partners in
the onshore wind farms, hydroelectric developments, and transmission
corridors shaping the region’s clean energy future.
30—RENEW CANADA – NOVEMBER/DECEMBER 2026
RENEWCANADA.NET
GOVERNMENT OF CANADA/DANIEL
LOCAL LABOUR AND EMPLOYMENT: The agreement guarantees that 85
per cent of all person-hours of employment constructing Gull
Island will stay within Newfoundland and Labrador, prioritizing
quali昀椀ed Labrador Innu, quali昀椀ed Labradorians, and quali昀椀ed
Newfoundlanders. Peak construction at Gull Island is expected to
employ up to 5,000 workers.
DIRECT RATEPAYER BENEFIT: To ensure local bene昀椀ts are immediately
felt, Premier Wakeham introduced a 15 per cent “Churchill River
Electricity Rebate” for residential ratepayers on their 昀椀rst 2,000
kWh of monthly usage, saving households an average of $351
annually.
“We are 昀椀nally replacing the notorious 1969 Churchill Falls deal and
the 2024 MOU with a new deal that will guarantee us more power,
more value, and more transmission,” said Premier Wakeham. “Newfoundlanders and Labradorians will 昀椀nally be the primary bene昀椀ciary
of our own resources... Today is not about what we can tear up, it’s
about what we can build up.”
