Nalcor Operations  >  Lower Churchill Project

Lower Churchill Project

The hydroelectric potential of Muskrat Falls and Gull Island make the lower Churchill River in Labrador the best undeveloped hydroelectric source in North America. Together, they have a combined capacity of more than 3,000 megawatts, will be able to provide 16.7 terawatt hours of electricity a year and reduce greenhouse gas emissions equivalent to taking 3.2 million vehicles off the road each year.

The Lower Churchill Project will be developed in two phases: first, Muskrat Falls and then Gull Island.

Muskrat Falls
Phase 1 - Muskrat Falls		 Gull Island
Phase 2 - Gull Island

Muskrat Falls

Sanctioned in December 2012, construction on the Muskrat Falls Project will take five years with first power expected in 2017. The development of the Muskrat Falls Project in Newfoundland and Labrador includes:

Muskrat Falls Hydroelectric Generation Facility

An 824 MW hydroelectric generation facility consisting of two dams and a powerhouse at Muskrat Falls.

Transmission Links

•Labrador-Island Link: A 60m wide, 1,100km High Voltage direct current (HVdc) transmission line from Muskrat Falls in Labrador to Soldiers Pond on the Avalon Peninsula.

•Labrador Transmission: 250km High Voltage alternating current (HVac) transmission lines between Muskrat Falls and Churchill Falls.

Strait of Belle Isle Cable Crossing

A 35km subsea cable crossing from Forteau Point, Labrador across the Strait of Belle Isle to Shoal Cove, on the Island of Newfoundland.

In addition, a 480km HVdc Maritime Transmission Link between the Island of Newfoundland and Nova Scotia is planned and will be financed and constructed by Nova Scotia’s Emera Inc. For additional information on the Maritime Link, please visit Emera NL’s website at: www.emeranl.com

The Muskrat Falls Project will mean:
• Long-term stable electricity rates for generations of Newfoundlanders and Labradorians
• Lowest-cost power for homes and businesses
• An end to dependence on oil and unstable electricity prices
• Energy for future mining and industrial development in the province
• A link to North America’s electricity grid for exports
• Clean, renewable power – 98% sustainable energy


Gull Island

Phase Two of the Lower Churchill Project will consist of the development of the 2,250 MW Gull Island generation facility and associated transmission to markets. The proposed development of Gull Island would begin at least three years after Muskrat Falls and is expected to take about eight years.

Gull Island will focus primarily on export and potential for industrial growth in Labrador.

Public Consultation

Nalcor Energy is dedicated to ensuring communities and residents receive accurate, timely information and have the opportunity to provide comments through meetings, open houses, one-on-one discussions, presentations and workshops.
Public consultation and regular communication with residents of Newfoundland and Labrador, especially those who may be impacted by the Lower Churchill Project, is a top priority for Nalcor.

Nalcor is committed to continued consultation and dialogue throughout construction of the Muskrat Falls Project. Upcoming consultation events, information sessions and speaking engagements will be advertised in the News and Publications section of our Information Centre. 









 

Nalcor and its subsidiary Newfoundland and Labrador Hydro (Hydro), have a responsibility to meet increasing power needs by recommending the lowest-cost generating supply option.

To meet the growing demand for energy on the island, Nalcor considered a broad portfolio of supply options. Two optimized generation scenarios emerged: 1) Isolated Island (upgrades to the current system) and 2) Interconnected Island (Muskrat Falls). Muskrat Falls, with a transmission link from Labrador to the island is the least-cost alternative over remaining isolated by a preference of $2.2 billion (2010$).

The province is presently dependent on oil and global oil markets for electricity generation at the Holyrood plant. Oil prices are far from stable and over the next few years, electricity rates on the island are expected to increase. By investing in hydropower, Hydro will secure stable electricity rates for consumers in the short and long term.

When Muskrat Falls power is brought to the island, rates for consumers will stabilize with minimal increases of less than one per cent per year into the future.

When Muskrat Falls is operational, expected in 2017, 40 per cent of the power will be needed for the island and 40 per cent will be available to support future industrial growth in Newfoundland and Labrador. The remaining 20 per cent will go to Nova Scotia's Emera Inc. for 35 years in exchange for their $1.2 billion investment in the Maritime Link. During that 35-year period, Nalcor will have access to about 70 per cent of the link's capacity - at no cost. Nalcor can use the link to transmit any Muskrat Falls power not needed in the province, as well as energy from any new generation sources in the province. The project will also provide significant employment and economic benefits throughout Newfoundland and Labrador. At peak, it will employ 2,700 people, and deliver $1.4 billion in labour and employment income and $212 million in taxes to the province.

Muskrat Falls is being built to meet the island's electricity needs. We'll use 40 per cent of the power on the island immediately and 20 per cent will go to Emera Inc. for use in Nova Scotia for 35 years in exchange for their $1.2 billion investment in the Maritime Link. We'll export the remaining 40 per cent into Atlantic Canadian and New England markets with the ability to recall it for our own provincial use at any time. This power can be used to support future industrial growth in this province. NL currently has very competitive industrial rates and they will continue to be strong as a result of our stable electricity base.