Canada has unveiled a nearly US$50.5 billion plan to dramatically expand hydropower and wind energy in the country’s east, in what Ottawa says could become the largest clean energy investment in North American history.
The agreement, signed Monday by Prime Minister Mark Carney’s government and the provinces of Quebec and Newfoundland and Labrador, aims to significantly increase electricity generation while sending part of the new supply to Quebec and potentially onward to the northeastern United States.
A key part of the plan is an upgrade of the Churchill Falls generating station in Labrador, along with the development of a new hydroelectric project at Gull Island, also in Labrador.
Carney’s office estimates the total investment at nearly CAN$70 billion.
The additional electricity, he said, would be enough to “light, heat (and) cool the homes in Toronto, Montreal and Vancouver combined.”
However, the ambitious project faces a major political hurdle. Quebec Premier Christine Frechette acknowledged at Monday’s signing ceremony that the agreement could be scrapped if the separatist Parti Quebecois wins the province’s October election.
Current opinion polls indicate the party could return to power.
The project would also strengthen Quebec’s electricity exports.
Hydro-Quebec already sells substantial amounts of power to markets in the northeastern United States, and some of the additional electricity generated under the agreement would flow through Quebec.
Carney, who took office last year, has faced criticism from environmental groups over his government’s energy policies.
Critics have accused him of moving away from climate commitments made under former prime minister Justin Trudeau.
A cabinet minister resigned last year over plans to advance a new oil pipeline from Alberta to Canada’s Pacific coast.
The clean energy plan has nevertheless received support from the Canadian Climate Institute.
The group said the scale of the project reflects the ambition required to meet Canada’s target of doubling its electricity grid with clean energy.
Rick Smith, president of the institute, said expanding domestic clean power would also help improve Canada’s energy security and keep electricity more affordable amid volatile global energy prices.
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