Canada puts $10B behind landmark $70B electricity build

A nearly $70-billion electricity build is moving into financing, permitting, and pre-development work across Labrador.

The federal government announced today that it will provide $10 billion in financing to upgrade and expand the Churchill Falls Generating Station, develop the Gull Island hydroelectric project, support a new Labrador onshore wind project with co-investment opportunities for the Innu of Labrador, and build associated transmission lines.

The announcement calls the combined projects the largest clean energy investment in North American history. Ottawa says they would generate 14,000 megawatts of renewable power, nearly tripling Churchill Falls’ current generating capacity. According to the release, it’s enough power to light, heat, and cool all homes in Toronto, Montreal, and Vancouver combined.

The federal government will support an assessment of transmission infrastructure needed to connect western Labrador mining operations to the electricity grid. It will also fund planning and feasibility work for transportation and energy infrastructure for the Kami iron ore project, and pre-construction work on a transmission line and road connecting Focus Graphite’s Lac Knife project to Hydro-Québec’s grid.

Ottawa has also referred the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office. The office will coordinate and structure federal financing, accelerate permitting requirements, and work with Indigenous Peoples on partnerships.

“Canada is extending its unique advantage in clean, reliable, and affordable power,” says Prime Minister Mark Carney. “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.”

The government says the wider build will support 23,000 construction jobs and contribute $31 billion to Canada’s GDP through the early 2040s. It also forms part of the National Electricity Strategy, which aims to double grid capacity by 2050 and supply clean, reliable and affordable energy across Canada.

Final shots

• The federal commitment is $10 billion in financing toward projects valued at nearly $70 billion.
• The projects will add 14,000 megawatts of renewable generating capacity, support 23,000 jobs in just the construction phase, and contribute $31 billion to Canada’s GDP through the early 2040s.