$70-billion Labrador energy buildout billed as largest clean-energy investment in North American history

Newfoundland and Labrador is at the centre of what the federal government is calling the largest clean-energy investment in North American history, with nearly $70 billion earmarked for hydroelectricity, wind power and transmission projects in Labrador.

Prime Minister Mark Carney made the announcement Monday alongside Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette in St. John's.

The package includes the modernization and expansion of the Churchill Falls Generating Station, development of the long-discussed Gull Island hydroelectric project, new transmission infrastructure and a proposed Labrador wind project.

Together, the projects are expected to generate 14,000 megawatts of clean, renewable electricity.

The federal government said the projects will support about 23,000 jobs and contribute $31 billion to Canada's GDP through the early 2040s.

Federal financing and investments of up to $10 billion will support the broader initiative, including upgrades to Churchill Falls, Gull Island, transmission and opportunities for Indigenous participation in a major Labrador wind project.

The federal government said the investment would help Canada respond to growing electricity demand while strengthening the country's position in clean energy and critical minerals.

Carney said the projects would produce enough electricity to light, heat and cool the homes of Toronto, Montreal and Vancouver combined.

The federal government said the initiative would also advance Canada's goal of doubling electricity-grid capacity by 2050.

At the centre of the announcement is Gull Island, a project that has been discussed for decades but never reached construction.

The agreement also provides for an expansion of Churchill Falls and new transmission infrastructure intended to move electricity to markets in Newfoundland and Labrador, Quebec and the United States.

Newfoundland and Labrador will receive greater access to its own electricity under the agreement.

The province will be able to retain up to 2,350 megawatts from Churchill Falls and Gull Island, while a proposed 2,000-megawatt wind project would provide another 400 megawatts of generated power.

The province also secured a guaranteed transmission portfolio totalling 985 megawatts.

That includes access to markets in New York and New England through transmission infrastructure in Quebec, along with additional market-based export capacity.

The projects are being positioned as more than an electricity development.

Ottawa is also tying the investment to the Labrador Trough, a major mining region stretching across Labrador and Quebec.

The federal government said the region has produced more than two billion tonnes of iron ore over the past half-century and remains an important source of high-purity iron ore for lower-carbon steel production.

Federal funding will support studies and pre-development work for infrastructure connected to Labrador West mining, the Kami iron ore project and other critical-mineral developments.

The province said the broader agreement could help unlock new mining and industrial opportunities in Labrador that have been constrained by a lack of electricity.

The agreement also represents a historic change in the relationship between Newfoundland and Labrador and Quebec.

It will replace the controversial 1969 Churchill Falls power contract, which allowed Hydro-Québec to purchase Churchill Falls electricity at 0.2 cents per kilowatt hour.

Wakeham said the province had secured “more power, more value and more transmission” and would now have greater control over how its electricity is used.

The province has placed the value of its financial benefit from the agreement at $49 billion in 2026 net present value, compared with $36 billion under the 2024 MOU.

For residents, the province has also announced a proposed 15 per cent Churchill River Electricity Rebate on the first 2,000 kilowatt hours of monthly residential electricity use.

The rebate is expected to save the average ratepayer about $351 per year, although it will not take effect until the definitive agreements are finalized.

The federal government said the combined projects would help build a larger, cleaner electricity system while supporting economic development and critical-mineral production across Labrador.

“This is cooperative federalism at work,” Carney said.