The New Churchill Falls Deal Is a Major Step in Fuelling Canada’s Innovation Economy

By Karen Moores
CCI Senior Advisor, Atlantic Canada

A year ago, you may have read our op-ed on why the  2024 re-negotiated Churchill Falls deal mattered to driving the  prosperity of Newfoundland and Labrador. We wrote that article on the heels of the provincial general election. It was already a good deal. Then an election happened at home in NL, alongside a few pivotal elections across Canada and around the world. This week's deal is more comprehensive and has many more upsides for the prosperity of NL, Quebec and our country.

Current Premier Tony Wakeham won that provincial election, defeating then Premier John Hogan, and subsequently read the room: in an increasingly dangerous world driven by geopolitical trends, NL assets such as Churchill Falls hold far greater value than what was negotiated just 18 months prior.

The energy agreement announced this week by the Governments of Canada, Newfoundland and Labrador, and Quebec is a major step forward to building a stronger, more sovereign Canada. Enormous amounts of new clean power coming online is a competitive advantage for Canada, and for Canadian innovators as we build a more innovative and productive economy.

Canada's first generation of hydro investments built world-class Canadian companies and cutting-edge Canadian expertise. The new energy agreement sets Canada up for success with substantial amounts of new clean electricity generation, as well as and connections to critical minerals projects.

But success means growing and scaling the next generation of Canadian innovators, not only driving more exports of minerals and power.

For this transformational set of investments, the federal government, Quebec, and Newfoundland and Labrador, along with private sector proponents, should leverage these investments to build in Canadian innovation and new technology right into the supply chain. for this transformative set of investments.The new energy agreement sets Canada up for success with significant amounts of new clean electricity generation and connections to critical minerals projects.

Here’s what else CCI will be monitoring for Canadian innovators, particularly those in Newfoundland and Labrador and Quebec:

• Procurement must be done right: There are billions of dollars in procurement opportunities ahead: this is a chance to build on the tangible assets at play alongside the ingenuity of our innovators who can provide the technologies that build additional long-term generational wealth.
• Innovators need power: 70% more incremental power is incorporated into this deal than the 2024 deal: for our entrepreneurs who need energy power, this is a major step forward in a secure grid that fuels the stability. We need to ensure that this deal moves with the speed and scale our energy innovators, and those working within, require to scale at home.
• Entrepreneurs can’t afford any more delays: the multiple major projects referred by the Prime Minister to the Major Projects Office need to move with speed and scale. Nation building projects need the technologies, data and infrastructure to meet the moment: our members own these technologies and offering speed, scale alongside stability and trust provides fuel to grow and deliver at home.
• A New Atlantic Energy Strategy should back Canadian innovators: the needs of innovators need to be front and centre ranging from procurement practises to how energy policy benefits those who need power most as they develop world-class AI and critical minerals infrastructure.  

In dangerous times, with what feels like constant looming tariff uncertainty, Canadian innovators will only be able to scale into domestic global winners when our governments provide the policies that fuel prosperity and stability.

The Churchill Falls deal is a major step in building a more resilient and competitive Canada.
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About the Council of Canadian Innovators (CCI)

The Council of Canadian Innovators (CCI) is Canada’s business council for the 21st century economy. We are a collective of over 175 of Canada’s fastest-growing and most ambitious companies, and the founders, CEOs, and executives behind them, working together to improve the business conditions that help more homegrown companies scale, compete globally, and drive long-term prosperity. Learn more at canadianinnovators.org.