Prime Minister Mark Carney visited St. John’s to reveal a new accord on Churchill Falls and other energy undertakings in Labrador, accompanied by N.L. Premier Tony Wakeham and Quebec Premier Christine Fréchette. The agreement is hailed as the most extensive clean energy investment in North American history, worth nearly $70 billion, with $10 billion in federal funding from Ottawa. This funding will be allocated to enhance the Churchill Falls generating station, develop the Gull Island hydroelectric project, construct transmission lines, and execute a 2,000-megawatt onshore wind energy project in Labrador.
The enhancements will boost the current capacity of Churchill Falls, providing enough electricity to illuminate, heat, and cool all residences in Toronto, Montreal, and Vancouver combined. The agreed framework is in place until March 2027, pending the signing of a definitive agreement, which the involved parties aim to finalize by year-end. However, with the provincial election scheduled for Oct. 5, a change in government before the official agreement is signed remains a possibility.
Under the deal, Quebec will have access to over 10,000 megawatts, more than a quarter of Hydro-Québec’s total output. This surpasses the 2024 Churchill Falls Memorandum of Understanding, rejected by Wakeham shortly after assuming office, which entailed a potential of 7,200 megawatts. The electricity from Churchill Falls will be sold to Quebec at an average rate of 6.2 cents per kilowatt-hour, potentially saving $200 billion throughout the agreement’s duration.
Experts like Yvan Cliche from the Université de Montréal’s center for international studies view this agreement as a significant milestone for Quebec, predicting benefits for both the energy sector and consumers by enabling Hydro-Québec to maintain low rates. The accord represents a victory for Fréchette, offering an opportunity to showcase her economic expertise before the upcoming campaign. If Coalition Avenir Québec (CAQ) retains power in the election, Fréchette pledges to ensure the Churchill Falls deal’s formalization.
Notably, opposition leaders from the Innu nations Matimekush-Lac John and Uashat mak Mani-utenam emphasized the necessity of their consultation for any agreement regarding the Churchill Falls project, citing historical ties to the project site. The impending election campaign in Quebec has intensified scrutiny on Fréchette, with opposition parties questioning the timing and legitimacy of the deal. The Quebec Conservatives and Quèbec Solidaire have accused Fréchette of pursuing electoral gains with the agreement, sparking a heated exchange of criticisms in the lead-up to the campaign launch.
While the deal has garnered mixed reactions, with some parties questioning its timing and impacts, Fréchette challenges the opposition to present alternative proposals that match the scale of benefits outlined in the agreement, emphasizing the job creation and energy security it promises for both Newfoundland and Quebec.