Quebec and Newfoundland and Labrador announce Churchill Falls energy deal

Quebec and Newfoundland and Labrador, in collaboration with the Canadian federal government, have announced a framework agreement to expand electricity production capacity at the Churchill Falls site. The agreement involves investments exceeding $50 billion to improve and construct hydroelectric and wind energy projects, as well as transport lines.

Key components of the project include increasing the power of the Churchill Falls plant and constructing a new hydroelectric dam at Gull Island. The initiative may also include studies for a wind farm and a new dam at Churchill Falls. Quebec is expected to gain access to over 10,000 megawatts of power, enough to supply approximately three million residences. Hydro-Québec will purchase the electricity at an average price of 6.2 cents per kWh.

The Quebec Mining Association (AMQ) has welcomed the agreement, noting that the additional energy could strengthen economic growth and support strategic sectors like the mining industry. However, the AMQ emphasized that for this energy to support industrial projects, it must be accompanied by adequate transport infrastructure and predictable, competitive access conditions.