North America's largest clean energy investment will unlock new economic opportunities

New Economy Canada welcomes the joint federal, Québec, and Newfoundland and Labrador clean power and transmission agreement

VICTORIA, BC, Aug. 18, 2026 /CNW/ -- This historic agreement to upgrade and expand the Churchill Falls Generating Station and develop the Gull Island project and related transmission--supported by $10 billion in federal financing--demonstrates how cooperative federalism can translate the ambition of Powering Canada Strong, Canada's national electricity strategy, into progress. The Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor referral to the Major Projects Office reinforces that affordable, reliable clean power--and the electrification it supports--is now central to the country's economic growth, industrial competitiveness and investment future. 

What this means for Canada:  

• Electricity does more than keep the lights on, it is foundational economic infrastructure. This announcement illustrates how abundant clean power can support Canada's growth, productivity and affordability agenda. 
• Better connected provincial grids can cut costs, strengthen reliability, and lower emissions, generating billions in net benefits, boosting resilience for extreme events, and making better use of low-cost renewable energy.
• Reliable, affordable and clean electricity is the foundation for Canada's most strategic industries, including mining and critical minerals, as evidenced by the referral of the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office.
• As industries, transportation and buildings electrify, Canada will need significantly more electricity supply to meet growing demand. That means building faster, cleaner, and smarter today, supported by stronger collaboration for inter-provincial grid connections and made-in-Canada supply chains.  

In response, Merran Smith, President of New Economy Canada said:

"Yesterday's announcements are the perfect illustration of how collaboration between utilities, neighbouring provincial governments, and the federal government can unlock new economic opportunities by building out clean electricity resources and better connecting provincial power grids. This spirit of cooperation must now continue with engagement of the Innu to secure their support and participation, ensuring they share in the benefits.

These announcements neatly capture how Canada can compete and succeed in the clean economy: we grow our clean electricity supply and connect it to mining operations that can produce the inputs for the batteries that will increasingly support our power grids and vehicles alike.

Electrification is the backbone of competitiveness, growth, energy security, and affordability, and that means we need more clean power as fast as we can build it and connect it to those communities and industries that need it."

About New Economy Canada 

New Economy Canada is an alliance of more than 70 businesses, labour organizations and Indigenous partners. Together, we represent over 750,000 workers across emerging and traditional sectors such as manufacturing, electricity, mining, construction and clean technology - generating over $200 billion in annual revenue. 

SOURCE New Economy Canada

Media inquiries: Cat Veitch, Digital Specialist, New Economy Canada, [email protected]