Quebec, Newfoundland and Labrador announce Churchill Falls energy deal

Quebec and Newfoundland and Labrador have announced a non-binding deal regarding the Churchill Falls energy project. The agreement, revealed by Quebec Premier Christine Frechette, Newfoundland and Labrador Premier Tony Wakeham, and Prime Minister Mark Carney, replaces the 1969 Churchill Falls Agreement and a 2024 Memorandum of Understanding (MOU).

The deal guarantees Quebec's supply of electricity from the Churchill Falls generating station until 2077. Federal financing of $10 billion is allocated to upgrade and expand the 5,428 MW generating station, develop a 2,700 MW Gull Island hydroelectric project, build transmission lines, and invest in a major new onshore wind project in Labrador.

The proposed deal would see Quebec receiving about 6,915 MW from both Churchill Falls and Gull Island, with another 3,850 MW earmarked for potential new projects, including a wind farm and a hydroelectric facility. This would total around 10,000 MW for Quebec, though the federal government estimates the project could generate 14,000 MW in total.

Newfoundland and Labrador would retain about 2,350 MW from Churchill Falls and Gull Island, which is 360 MW more than the 2024 MOU promised. The new wind project would provide an additional 2,000 MW, contributing to the 400 MW increase noted by Wakeham.

The deal comes after Newfoundland and Labrador's Progressive Conservatives won a majority government in the 2025 election, prompting Premier Tony Wakeham to subject the agreement to an independent review. Previously, Wakeham had indicated a willingness to hold a public referendum on the deal, but instead, he opted for a special session of the House of Assembly to review it.

Quebec stands to benefit from the deal, as it will secure the necessary megawatts to meet its growing electricity demand through 2075. The new agreement also addresses the criticism surrounding the original 1969 deal, which saw Quebec buying hydroelectric power from Churchill Falls at a low rate and subsequently reselling it at a higher price.