• Canada will provide $7.2 billion in federal financing for major hydroelectric, wind and transmission projects spanning Newfoundland and Labrador and Québec.
• The wider investment is valued at nearly $50.7 billion, with projects expected to deliver 14,000 MW of renewable power and support 23,000 jobs.
• The buildout links clean power with critical minerals strategy, including new infrastructure for iron ore, graphite and mine electrification in the Labrador Trough.

Canada puts clean power at the centre of industrial policy

Prime Minister Mark Carney has announced a sweeping clean energy agreement that Canada is calling the largest clean energy investment in North American history.

The federal government will provide $7.2 billion in financing for a group of major electricity and infrastructure projects. They include the expansion of Churchill Falls, development of Gull Island and construction of associated transmission lines.

The agreement also opens co-investment opportunities with the Innu of Labrador in a new onshore wind project.

Together, the projects represent nearly $50.7 billion in investment. They are expected to generate 14,000 megawatts of renewable electricity.

That would nearly triple the current generating capacity of Churchill Falls. According to the government, it would produce enough power for the homes of Toronto, Montréal and Vancouver combined.

The projects are also expected to support 23,000 jobs and contribute C$31 billion to Canadian GDP through the early 2040s.

“Canada is extending its unique advantage in clean, reliable, and affordable power. Because when we master energy, we master our destiny. Through cooperative federalism, we are unlocking our immense potential, building big, building sustainably, building in partnership, and building Canada strong for all.”
Mark Carney, Prime Minister of Canada

Québec and Newfoundland reset energy ties

The agreement carries significance beyond its generation capacity. It reshapes the relationship between Québec and Newfoundland and Labrador around one of Canada’s most important hydroelectric assets.

Newfoundland and Labrador Premier Tony Wakeham framed the deal as a replacement for the long-disputed 1969 Churchill Falls agreement and the 2024 memorandum of understanding.

“This is a win-win-win for Newfoundland and Labrador, the federal government, and Québec. I want to thank Prime Minister Carney and Premier Fréchette for their leadership throughout this process. We are finally 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. Newfoundlanders and Labradorians will finally be the primary beneficiary of our own resources, with complete control over whether we use our power to develop our economy or sell to outside markets. Today is not about what we can tear up, it’s about what we can build up. It is now time for us to roll up our sleeves and get to work to build a better and brighter future for all of us.” Tony Wakeham, Premier of Newfoundland and Labrador

Québec Premier Christine Fréchette linked the agreement directly to energy security and economic competitiveness. “In the current geopolitical context, it is vital for every nation to secure its energy future. I am very proud to announce today the conclusion of this new agreement, which is a priority for Québec, particularly for generations to come. Through this partnership, we are supporting the energy transition and enabling the growth of our economy through renewable energy, while ensuring our energy independence.”

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Critical minerals corridor moves into focus

Ottawa is also connecting the electricity expansion to Canada’s critical minerals ambitions.

The government referred the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office. The region contains significant deposits of high-purity iron ore across Newfoundland and Labrador and Québec.

The office will coordinate federal financing, accelerate permitting and work with Indigenous Peoples on project partnerships.

Canada will also support several pre-development projects through Natural Resources Canada’s First and Last Mile Fund.

These include transmission planning to electrify mining operations in western Labrador. Funding will also support infrastructure planning for the Kami iron ore project near Wabush.

Focus Graphite will undertake pre-construction work for a transmission line and road connecting its Lac Knife graphite project to Hydro-Québec’s grid. SFP Pointe-Noire will pursue expanded mineral handling and rail capacity.

Clean power becomes an investment strategy

For investors and corporate energy buyers, the package illustrates Canada’s broader industrial approach. Clean electricity is being paired with public financing, faster project approvals, investment tax credits and provincial cooperation.

The strategy could expand electricity supply for mining and industrial development while improving access to lower-carbon power. It also links energy infrastructure directly to critical mineral supply chains needed for batteries, storage and other clean technologies.

For Canada’s provinces, the agreement also tests whether cooperative federalism can unlock projects at a scale rarely seen in the country’s power market.

If delivered as planned, the Churchill Falls and Gull Island buildout could reshape eastern Canada’s electricity system while strengthening the country’s position in clean energy and strategic minerals. Its wider relevance will depend on whether Canada can turn public financing, permitting reform and political cooperation into projects that reach construction at the pace now being promised.