Government of Canada Begins Construction on New Central Heating Plant at 5 Wing Goose Bay
October 6, 2026
Happy Valley-Goose Bay, Newfoundland and Labrador – Department of National Defence / Canadian Armed Forces
On October 2, 2026, Philip Earle, Member of Parliament for Labrador, Labrador, on behalf of the Honourable David J. McGuinty, Minister of National Defence, participated in a groundbreaking ceremony to mark the start of construction of a new Central Heating Plant at 5 Wing Goose Bay.
This plant will give the Wing reliable, lower-cost heat powered by Labrador’s hydroelectricity. 5 Wing Goose Bay supports North American Aerospace Defense Command (NORAD) operations and Canadian Armed Forces activity across the Arctic and North. That work depends on modern, dependable infrastructure.
In December 2025, the Government of Canada awarded a $187-million Energy Performance Contract (EPC) to MCW Custom Energy Solutions Ltd. to modernize infrastructure at 5 Wing. The new Central Heating Plant is the cornerstone of the EPC. It will move the Wing off diesel heating and onto Labrador’s electrical grid.
To support this transition, the Department of National Defence (DND) secured an additional 20 megawatts of electrical capacity from Newfoundland and Labrador Hydro. The project will also include upgrades to control systems and utility metering infrastructure.
The EPC is expected to reduce the Wing’s energy costs by 77%, generating approximately $8.6 million each year., It will also lower GHG emissions by 94% from current levels, a reduction of roughly 19,000 tonnes per year. The project is anticipated for completion by December 2030.
Quotes
“Canada is moving with speed and purpose to defend and build the North. That work depends on strong bases like 5 Wing Goose Bay. Today, we begin building the modern, reliable infrastructure the women and men who serve there rely on. This is what rebuilding, rearming and reinvesting in the Canadian Armed Forces looks like.”
The Honourable David J. McGuinty, Minister of National Defence
“Labrador’s essential contribution to 5 Wing Goose Bay is also an essential contribution to Canada’s northern sovereignty. Our government is making the generational investments needed so Canada remains prepared, present, and resilient in the North.”
The Honourable Philip Earle, Member of Parliament for Labrador, Newfoundland and Labrador
“This historic investment advances Canada’s Net Zero goals while strengthening Arctic sovereignty and operational reach by leveraging Industry partners. Defence Construction Canada’s efficient procurement and contract management processes support the Department of National Defence as we find new and innovative ways to reduce energy use and emissions and improve long-term resilience of critical infrastructure across Canada and in the North.”
Derrick Cheung, President and Chief Executive Officer, Defence Construction Canada
Quick facts
- EPCs contribute to the federal government’s target of achieving net-zero emissions by 2050 by modernizing its infrastructure to reduce its carbon footprint and real property operating costs. DND is implementing nine additional EPCs planned for award at installations across Canada over the next three to five years, representing over $650 million in new investments.
- EPCs support DND’s implementation of the Defence Climate and Sustainability Plan (2023–2027). Similar contracts are now in development for bases in Trenton, Montreal and Cold Lake. A second EPC is in development for Petawawa.
- Since 2015, DND has implemented EPC contracts at 22 locations, and alongside our energy service company partners, have invested almost $598 million in energy and GHG reduction improvements. Once the EPC projects underway are completed, we expect to reduce our annual energy costs by nearly $27 million per year and reduce our emissions by over 90,000 tonnes annually.
- Facilities at 5 Wing Goose Bay will remain fully functional during the project, with no impact on military operations. Local CAF members will receive training on the upgraded systems, enhancing workforce expertise.
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