A recent development sheds light on a fresh agreement concerning Churchill Falls between Newfoundland and Labrador (N.L.) and Quebec. The revised deal aims to enhance energy production and delineates the allocation of resources. Unnamed sources disclosed to CBC News that a memorandum of understanding (MOU) is on the brink of conclusion with an official announcement anticipated in the forthcoming week.
According to sources close to the matter, Quebec and N.L. are set to receive significantly more electricity under this new agreement compared to the previous MOU. Quebec is slated to obtain approximately 10,000 MW, while N.L. is expected to receive a minimum of 2,350 MW, potentially reaching up to 3,000 MW. Not all details have been finalized yet.
To achieve the augmented electricity production capacity, the two provinces have agreed to advance the hydroelectric facility at Gull Island and enhance the turbine capacity at the existing Churchill Falls plant. Notably, the updated deal now incorporates wind power, an aspect absent in the 2024 MOU.
Minister Lela Evans refrained from divulging specific details of the new MOU during a recent press briefing. The potential for a referendum on the new deal, as pledged by N.L. Premier Tony Wakeham, was not directly addressed by Evans, who emphasized the government’s initiatives in creating opportunities, generating employment, and boosting financial prosperity for residents.
Labrador City Mayor Jordan Brown expressed the urgency for a new agreement to bolster electricity production in the region. The revised deal reportedly guarantees transmission access of 985 megawatts through Quebec, enabling N.L. to sell excess Churchill River electricity to other markets via Hydro-Quebec’s network.
Gabe Gregory, a consultant involved in reviewing the previous MOU, highlighted the significance of market access in the new agreement. He stressed the importance of an independent review of the MOU to ensure transparency and public involvement in decision-making.
Ben Oates, chair of Friends of Renewable Churchill Energy, acknowledged the similarities between the new and previous agreements, emphasizing the need for progress in negotiations and expressing concerns over potential risks to the deal due to the upcoming Quebec elections.
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