August 18, 2026
A historic agreement to upgrade and expand the Churchill Falls Generating Station, develop the Gull Island hydroelectric project and build related transmission infrastructure is being supported by $10 billion in federal financing, highlighting the growing role of clean electricity in Canada’s economic strategy.
The agreement demonstrates how federal and provincial cooperation can support the goals of Powering Canada Strong, Canada’s national electricity strategy, while expanding the reliable electricity supply needed for industrial growth and electrification.
The referral of the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office further connects electricity infrastructure with Canada’s mining and critical minerals ambitions.
Reliable and affordable clean electricity can support mining operations while strengthening the domestic supply chains needed for batteries, transportation, manufacturing and other strategic industries.
Better-connected provincial power grids could improve reliability, lower costs and emissions, and make more effective use of renewable electricity. Greater interprovincial transmission capacity can also improve resilience during extreme events and help move electricity to communities and industries experiencing growing demand.
As buildings, transportation and industrial operations electrify, Canada will require substantially more generation and transmission infrastructure.
Merran Smith, President of New Economy Canada, said collaboration between utilities, provincial governments and the federal government can unlock new economic opportunities through expanded clean electricity generation and better-connected provincial grids.
Smith also emphasized the importance of engagement with the Innu to secure their participation and ensure benefits are shared.
New Economy Canada argues that electrification will be central to Canadian competitiveness, economic growth, energy security and affordability. Meeting that opportunity will require faster development of clean power, stronger interprovincial connections and Canadian supply chains capable of supporting major infrastructure investment.
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