Ottawa has dubbed it the most significant investment in clean energy in North American history. Prime Minister Mark Carney, alongside N.L. Premier Tony Wakeham and Quebec Premier Christine Fréchette, made the announcement in St. John’s on Monday regarding a new agreement on Churchill Falls and other electricity projects in Labrador.

This deal entails Ottawa providing $10 billion for the upgrade and expansion of the Churchill Falls generating station, development of the Gull Island hydroelectric project, construction of transmission lines, and the implementation of a 2,000 MW onshore wind energy project in Labrador. These projects, valued at nearly $70 billion, are set to significantly increase the generating capacity of Churchill Falls, equivalent to powering all homes in Toronto, Montreal, and Vancouver combined.

The agreement is expected to create 23,000 jobs and benefit both Quebec and Newfoundland and Labrador. Newfoundlanders and Labradorians will receive a 15% rebate on their first 2,000 kWh of monthly electricity usage, saving an average of $351 per year.

The revised agreement between Newfoundland and Labrador Hydro and Hydro-Quebec indicates an increased net present value of $49 billion for N.L., up from the previous $36 billion estimate. It is effective until March 31, 2027, and aims to provide more power, value, and transmission to Newfoundland and Labrador.

Furthermore, the agreement guarantees transmission access of 985 MW through Quebec, allowing N.L. to sell excess energy to other markets. The deal also includes potential upgrades to the current Churchill Falls facility, boosting its capacity by 23.5%, and additional power generation from the wind project.

The agreement seeks to support the growth of Labrador’s mining industry and includes funding for engineering studies for transmission lines and the Kami iron ore project. Despite Quebec’s upcoming election, the current agreement aims to secure more megawatts and jobs for both provinces.