The Churchill River in Labrador is a significant source of renewable, clean electrical energy; however, the potential of this river has yet to be fully developed. The existing 5,428 MW Churchill Falls generating station, which began producing power in 1971, harnesses about 65 per cent of the potential generating capacity of the river.  The remaining 35 per cent is located at two sites on the lower Churchill River, known as the Lower Churchill Project ( LCP).

The Lower Churchill Project, one of Nalcor Energy's five lines of business, is the most attractive undeveloped hydroelectric project in North America. The Project consists of two sub-projects: Generation and Transmission.

The Lower Churchill Generation Project's two proposed installations, Gull Island and Muskrat Falls, will have a combined capacity of 3,074 MW and can provide 16.7 Terawatt hours of electricity per year. That is enough to supply hundreds of thousands of households annually and contribute significantly to the reduction of air emissions from thermal, coal and fossil fuel power generation.

The Lower Churchill Transmission Project is generally referred to as the Labrador - Island Transmission Link. The proposed 1,100 km High Voltage direct current (HVdc) link will be the first of its kind in Newfoundland and Labrador and will be constructed from Gull Island, in the central region of Labrador, down to Soldiers Pond on Newfoundland's Avalon Peninsula. The island link is the Province's long-term energy plan designed to meet the province's clean energy requirements and its future economic development and growth.

More information on the Generation and Transmission Projects, including both environmental assessments, is available in the respective sections of this site.

Local Benefits

Development of the untapped hydroelectric potential of the lower Churchill River will be the foundation for Newfoundland and Labrador's sustainable economy by providing long-term renewable energy supply and a source of revenue. Through ownership, the people of the Province will be the principal beneficiaries of substantial financial returns.

During the construction phase, the Project will make a strong contribution to the local and provincial economies through associated employment and business opportunities. The construction period of the Lower Churchill Project will result in substantial direct, indirect and induced work for local residents and companies. The construction activities associated with both projects will offer approximately 17,000 person years of direct employment.

Once the current and future needs of the province are met, the remaining electricity generated from the Project will be exported to markets outside of Newfoundland and Labrador. The increasing demand for clean energy is a national and international trend that is fuelled by population growth, growth in economic activity and technological advances. The demand is predicted to continue well into the future. Participation in North American electricity markets will generate considerable revenue for the benefit of the Province.

Lowering Greenhouse Gas (GHG) Emissions

In addition to economic benefits, the Project will significantly reduce greenhouse gas (GHG) emissions both within the province and potentially in other markets outside of the province resulting from the displacement of other thermal generation sources.

Several international agencies have recently highlighted hydroelectric energy generation as a key instrument for lowering emissions and as a vital component of a cleaner, renewable future. These include the Intergovernmental Panel on Climate Change (IPCC), the World Summit on Sustainable Development and the United Nations Symposium on Hydropower and Sustainable Development.

The Project will address climate change concerns by reducing GHG emissions.  In fact, the Project is a major part of the Province's strategy to reduce GHG emissions from increased electricity demand and to offset GHG emissions from other sources. Once in operation, the Project can displace more than 16 megatonnes of carbon dioxide emissions annually - the equivalent to taking of 3.2 million vehicles off the road each year.