Muhammad Amanullah | August 17, 2026
The True Post: Canada’s long-running dispute and negotiations over electricity generated at Churchill Falls have reached a significant stage, with Newfoundland and Labrador and Quebec preparing a new energy agreement. Prime Minister Mark Carney is also expected to attend the major announcement, which is being viewed as a significant development in energy cooperation and economic relations between the two provinces.
Prime Minister Mark Carney will arrive in St. John’s on Monday, where he will join Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette for an important announcement concerning energy security and economic development. Negotiations between the two provincial governments over a new Churchill Falls agreement have accelerated considerably over the past week.
According to Radio-Canada, Quebec Premier Christine Fréchette is traveling to Newfoundland to sign the agreement. Quebec Energy Minister Bernard Drainville and Hydro-Québec President and CEO Claudine Bouchard are also expected to attend the ceremony.
Energy Agreement to Be Announced
The Newfoundland and Labrador premier’s office announced Saturday evening that a major energy agreement would be unveiled Monday in St. John’s. Prime Minister Mark Carney’s office later confirmed that the prime minister would attend the event.
Hydro-Québec has also invited journalists to an energy briefing ahead of Monday’s announcement. The company’s Executive Vice-President Dave Rhéaume is expected to provide details on energy and regulatory strategy. Natural Resources Canada is also organizing a technical briefing for the media.
The announcement is scheduled for 1:45 p.m. Monday in St. John’s, although full details of the agreement are expected to become available following the event.
Access to 985 Megawatts of Electricity Transmission
Sources with direct knowledge of the new agreement say it will include guaranteed access to transmission capacity of up to 985 megawatts of electricity for Newfoundland and Labrador.
This would allow Newfoundland and Labrador to transmit up to 985 megawatts through Quebec’s electricity system for sale to external markets. The provision is considered particularly important for the province because it could create new opportunities to bring its electricity production to other markets.
The expanded transmission arrangement could also help Newfoundland and Labrador increase electricity exports and attract investment into future energy projects.
More Electricity for Both Provinces
According to sources, the new agreement will significantly increase the amount of electricity allocated to both provinces compared with the 2024 memorandum of understanding.
Quebec is expected to receive approximately 40 percent more electricity than under the previous arrangement, while Newfoundland and Labrador’s allocation could increase by between 25 and 60 percent.
Sources indicate that Quebec could receive approximately 10,000 megawatts of electricity, while Newfoundland and Labrador could receive at least 2,350 megawatts. The province’s share could potentially increase to 3,000 megawatts in the future.
The additional electricity could help both provinces meet their energy needs more effectively and ensure sufficient power for future industrial projects.
Gull Island Project to Play Major Role
The agreement is also expected to include plans for a more powerful hydroelectric project at Gull Island to increase electricity generation.
The proposed hydroelectric project at Gull Island would have greater generating capacity and could significantly increase the amount of electricity available to both provinces in the future. The agreement is also expected to include an expansion of the generating capacity of the existing turbines at the Churchill Falls power plant.
Churchill Falls is already one of Canada’s major hydroelectric projects, and its electricity has been a long-standing issue in the commercial and energy relationship between Quebec and Newfoundland and Labrador.
Wind Power Included in New Agreement
The new agreement will also include wind power projects, making it different from the 2024 memorandum of understanding.
The 2024 agreement between then-Newfoundland and Labrador Premier Andrew Furey and former Quebec Premier François Legault did not include wind power.
By incorporating wind energy into the new agreement, the two provinces are expected to gain additional opportunities to expand their energy development plans. Combining hydroelectricity with wind power could increase overall electricity generation and diversify the provinces’ energy resources.
Economic Importance for Canada
The new Churchill Falls agreement could have implications far beyond electricity generation.
Newfoundland and Labrador would gain greater opportunities to produce additional electricity and sell it to external markets, while Quebec would have access to more power to meet its growing energy requirements.
Greater energy cooperation between the two provinces could also encourage new industrial projects, infrastructure development and private investment.
Prime Minister Mark Carney’s participation in the announcement signals that the federal government also considers the agreement important to Canada’s broader energy strategy.
The agreement is being viewed as part of wider efforts to expand Canada’s energy infrastructure, increase electricity generation and strengthen cooperation between provinces.
However, the final terms, financial details and timelines for the various projects are expected to be released on Monday. Those details will provide a clearer picture of the agreement’s potential economic and energy impacts.
