The Canadian federal government, together with the Premier of Newfoundland and Labrador, has announced a package providing up to CAD10bn (USD7.1bn) in federal financial support and investments to expand clean electricity generation and transmission infrastructure in Labrador, Canada (Canadian federal government statement, 17/08/2026).
Financial support for renewable power projects will cover:
- Upgrades to the existing turbines and expansion at the Churchill Falls power generation facility, increasing capacity by 1,275 MW and improving the efficiency of existing turbines by 30%. The Churchill Falls expansion will raise capacity by up to 2.5 GW.
- Construction of a new 2.7 GW run-of-river power plant on the Churchill River at Gull Island, with Hydro-Québec acting as the principal constructor. Once commissioned in 2036-2037, the project could generate 12 TWh/year of electricity.
- Construction of more than 660 km of transmission lines and associated power infrastructure to enable Churchill Falls and Gull Island to deliver electricity to the Quebec border.
- Construction of a new 735 kV transmission line from Churchill Falls to Labrador City to provide additional power to the region, support households, enable industrial load growth and facilitate increased critical minerals development.
- Proposed development of 2 GW of onshore wind capacity in Labrador, with the location and other details still under consideration by Newfoundland and Labrador Hydro.
“Enabled by a landmark Definitive Cooperation and Implementation Agreement (DCIA) signed between Hydro-Québec and Newfoundland and Labrador Hydro, these combined construction projects, valued at nearly CAD70bn – represent the largest clean energy investment in North American history” according to the government’s press release, equivalent to nearly USD50bn.
According to the government, these energy projects will help Canada meet rising energy demand and contribute to its objective of doubling electricity grid capacity by 2050.
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