Lower Churchill Project
Encyclopedia
The Lower Churchill Project is a planned hydroelectric project in Labrador
, Canada
, to develop the remaining 35 per cent of the Churchill River
that has not already been developed by the Churchill Falls Generating Station
. The Lower Churchill's two installations at Gull Island
and Muskrat Falls
will have a combined capacity of over 3,074 MW and be able to provide 16.7 Terawatt hours of electricity per year.
and financing.
According to former Premier Brian Tobin
, as Labrador borders Québec, when an agreement was being negotiated to sell the power generated at Churchill Falls, the power either had to be sold to an entity within Québec or it had to pass through Québec. The government of Québec refused to allow power to be transferred through Québec and would only accept a contract in which the power was sold to Québec. Because of this monopsony
situation, Hydro-Québec received very favourable terms on the power sale contract. The contract was negotiated to run for a 65-year timespan, running until the year 2041, and according to former Newfoundland Premier Danny Williams
, Hydro-Québec reaps profits from the Upper Churchill contract of approximately $1.7 billion per year, while Newfoundland and Labrador receives $63 million a year.
According to long-time Hydro-Québec
critic Claude Garcia, former president of Standard Life (Canada)
and author of a recent assessment of the utility commissioned by the Montreal Economic Institute
, if Hydro-Québec had to pay market prices for the low-cost power it got from the Churchill Falls project in Labrador, the 2007 profit would be an estimated 75 per cent lower.
According to the government of Newfoundland and Labrador
, Hydro-Québec
has reaped more than $19 billion in profits while Newfoundland has received only $1 billion in revenues from the Churchill Falls project. Québec refused to renegotiate the project, which doesn’t expire until 2041. Due to the coercion involved in that deal, Newfoundland and Labrador has sought an alternate route for the Lower Churchill Project that bypasses Québec.
A $6.2 billion deal between Newfoundland and Labrador’s Nalcor Energy
and Halifax-based Emera
was announced on November 18, 2010. Nalcor Energy will spend $2.9 billion to build a power generating facility at Muskrat Falls
, while Emera will invest $1.2-billion in the Maritime Transmission Link underwater power connection and $600 million in the Muskrat Falls facility in exchange for 20% of the 800-megawatts of capacity.
Construction of the first phase (Muskrat Falls Generating Facility, Labrador-Island Transmission Link and Maritime Transmission Link) is expected to be completed by the end of 2015, while the second phase (Gull Island Generating Facility) will not proceed until electricity demand strengthens.
, which will address air quality issues from burning fuel oil for electricity generation.
With the completion of Phase 1, Newfoundland and Labrador will have an electricity system that will be over 98% carbon free. The development of Muskrat Falls will avoid approximately 96 million tonnes of emissions by 2065, a significant number for a small province.
s. The concrete dam will be built in two sections (on the north and south abutments of the river): the north dam will be 32 m high and 432 m long and the south dam will be 29 m high and 325 m long. The reservoir will be 59 km long with an area of 101 km2. The area of inundated land will be 41 km2 at full supply level. Two 230kV AC transmission lines will connect with the Labrador-Island Transmission Link.
The Muskrat Falls development of the Lower Churchill Project will begin in 2011 and is expected to take approximately six years.
The Labrador-Island Transmission Link will be a 800MW 1,200 KM High-voltage direct current
(HVDC) system from Gull Island in central Labrador to an area near Soldiers Pond on the Avalon Peninsula
. This work will result in at least one million person hours of engineering and project management employment and 2.5 million person hours of construction employment in the province.
Key components include:
Construction of the Labrador-Island Transmission Link would take four years, followed by a year long commissioning project.
Major components include:
Both transmission lines will be supported by lattice-type steel structures and located north of the Churchill River, requiring a cleared right of way approximately 80 m wide in addition to the existing right of way.
s. The dam will be a concrete-faced, rock-fill construction 99 m high and 1,315 m long establishing a 213 km2 reservoir with a full supply level of 125 m above sea level. The reservoir will be 232 km long and the incremental area of inundated land will be 85 km2 at full supply level.
Labrador
Labrador is the distinct, northerly region of the Canadian province of Newfoundland and Labrador. It comprises the mainland portion of the province, separated from the island of Newfoundland by the Strait of Belle Isle...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, to develop the remaining 35 per cent of the Churchill River
Churchill River (Atlantic)
The Churchill River is a river in Newfoundland and Labrador which flows east from the Smallwood Reservoir in Labrador into the Atlantic Ocean via Lake Melville. The river is long and drains an area of ; it is the longest river in the province...
that has not already been developed by the Churchill Falls Generating Station
Churchill Falls Generating Station
The Churchill Falls Generating Station is a hydroelectric power station located on the Churchill River in Newfoundland and Labrador. The underground power station can generate 5,428 MW, which makes it the second-largest in Canada, after the Robert-Bourassa generating station. The generating station...
. The Lower Churchill's two installations at Gull Island
Gull Island, Labrador
Gull Island is a small island in Labrador, in the Province of Newfoundland and Labrador, Canada. The Lower Churchill Project will create a major dam in the area....
and Muskrat Falls
Muskrat Falls
Muskrat Falls is a natural 15 metre waterfall located on the lower Churchill River about 25 kilometers west of Happy Valley-Goose Bay, Labrador....
will have a combined capacity of over 3,074 MW and be able to provide 16.7 Terawatt hours of electricity per year.
Overview
Further development of the Churchill River in central Labrador was planned for after the Churchill Falls Generating Station opened in 1972. However, the government of Québec refused to allow exports of electricity through its territory. The Lower Churchill Project passed an environmental assessment in 1980, but the project was postponed indefinitely due to concerns over market access to Hydro-Québec's electricity transmission systemHydro-Québec's electricity transmission system
Hydro-Québec's electricity transmission system is an expansive, international power transmission system located in Quebec, Canada with extensions into the Northeastern United States...
and financing.
According to former Premier Brian Tobin
Brian Tobin
Brian Vincent Tobin, PC is a Canadian businessman and former politician. Tobin served as the sixth Premier of Newfoundland from 1996 to 2000. Tobin was also a prominent Member of Parliament and served as a Cabinet Minister in Jean Chrétien's Liberal government.- Early life, education, and family...
, as Labrador borders Québec, when an agreement was being negotiated to sell the power generated at Churchill Falls, the power either had to be sold to an entity within Québec or it had to pass through Québec. The government of Québec refused to allow power to be transferred through Québec and would only accept a contract in which the power was sold to Québec. Because of this monopsony
Monopsony
In economics, a monopsony is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers...
situation, Hydro-Québec received very favourable terms on the power sale contract. The contract was negotiated to run for a 65-year timespan, running until the year 2041, and according to former Newfoundland Premier Danny Williams
Danny Williams (politician)
Daniel E. "Danny" Williams, QC, MHA is a Canadian politician, businessman and lawyer who served as the ninth Premier of Newfoundland and Labrador between November 6, 2003, and December 3, 2010. Williams was born and raised in St. John's, Newfoundland and Labrador...
, Hydro-Québec reaps profits from the Upper Churchill contract of approximately $1.7 billion per year, while Newfoundland and Labrador receives $63 million a year.
According to long-time Hydro-Québec
Hydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
critic Claude Garcia, former president of Standard Life (Canada)
Standard Life (Canada)
The Standard Life Assurance Company of Canada is a major investment, retirement and financial protection company and is part of the Standard Life Group that is headquartered in Edinburgh, Scotland. Standard Life has been a prominent player in the Canadian marketplace since 1833.The company...
and author of a recent assessment of the utility commissioned by the Montreal Economic Institute
Montreal Economic Institute
The Montreal Economic Institute is a non-profit research organization based in Montreal. It aims at promoting economic education of the general public and efficient public policies in Quebec and Canada through studies and conferences. Its research areas include different topics such as health...
, if Hydro-Québec had to pay market prices for the low-cost power it got from the Churchill Falls project in Labrador, the 2007 profit would be an estimated 75 per cent lower.
According to the government of Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...
, Hydro-Québec
Hydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
has reaped more than $19 billion in profits while Newfoundland has received only $1 billion in revenues from the Churchill Falls project. Québec refused to renegotiate the project, which doesn’t expire until 2041. Due to the coercion involved in that deal, Newfoundland and Labrador has sought an alternate route for the Lower Churchill Project that bypasses Québec.
A $6.2 billion deal between Newfoundland and Labrador’s Nalcor Energy
Nalcor Energy
Nalcor Energy is a provincial energy corporation which is headquartered in St. John's, Newfoundland and Labrador. A provincial Crown corporation under the Government of Newfoundland and Labrador Nalcor Energy was created in 2007 to manage the provinces energy resources...
and Halifax-based Emera
Emera
Emera Incorporated is a Halifax, Nova Scotia based energy and services company with 570,000 customers.It operates three utility subsidiaries:* Nova Scotia Power* Bangor Hydro Electric Company* Saint Lucia Electricity Services Limited...
was announced on November 18, 2010. Nalcor Energy will spend $2.9 billion to build a power generating facility at Muskrat Falls
Muskrat Falls
Muskrat Falls is a natural 15 metre waterfall located on the lower Churchill River about 25 kilometers west of Happy Valley-Goose Bay, Labrador....
, while Emera will invest $1.2-billion in the Maritime Transmission Link underwater power connection and $600 million in the Muskrat Falls facility in exchange for 20% of the 800-megawatts of capacity.
Construction of the first phase (Muskrat Falls Generating Facility, Labrador-Island Transmission Link and Maritime Transmission Link) is expected to be completed by the end of 2015, while the second phase (Gull Island Generating Facility) will not proceed until electricity demand strengthens.
Benefits
The project is expected to provide a long-term, sustainable, and renewable energy supply that will enable rate stability and energy security for the province, leading to increased economic growth. It will also enable the retirement of the inefficient Holyrood Thermal Generating StationHolyrood Thermal Generating Station
The Holyrood Thermal Electric Generating Station built by Newfoundland and Labrador Hydro Corporation is located near the community of Holyrood, in Conception Bay, Newfoundland, Canada.-Overview:...
, which will address air quality issues from burning fuel oil for electricity generation.
With the completion of Phase 1, Newfoundland and Labrador will have an electricity system that will be over 98% carbon free. The development of Muskrat Falls will avoid approximately 96 million tonnes of emissions by 2065, a significant number for a small province.
Muskrat Falls Generating Facility
The Muskrat Falls Generating Facility 53°14′44"N 60°46′17"W will consist of a generation station with a capacity of 824 MW and a powerhouse which will contain four Kaplan turbineKaplan turbine
The Kaplan turbine is a propeller-type water turbine which has adjustable blades. It was developed in 1913 by the Austrian professor Viktor Kaplan, who combined automatically adjusted propeller blades with automatically adjusted wicket gates to achieve efficiency over a wide range of flow and...
s. The concrete dam will be built in two sections (on the north and south abutments of the river): the north dam will be 32 m high and 432 m long and the south dam will be 29 m high and 325 m long. The reservoir will be 59 km long with an area of 101 km2. The area of inundated land will be 41 km2 at full supply level. Two 230kV AC transmission lines will connect with the Labrador-Island Transmission Link.
The Muskrat Falls development of the Lower Churchill Project will begin in 2011 and is expected to take approximately six years.
Labrador-Island Transmission Link
Emera and Nalcor will form a joint venture to construct transmission facilities from Labrador to Newfoundland at a cost of $2.1 billion.The Labrador-Island Transmission Link will be a 800MW 1,200 KM High-voltage direct current
High-voltage direct current
A high-voltage, direct current electric power transmission system uses direct current for the bulk transmission of electrical power, in contrast with the more common alternating current systems. For long-distance transmission, HVDC systems may be less expensive and suffer lower electrical losses...
(HVDC) system from Gull Island in central Labrador to an area near Soldiers Pond on the Avalon Peninsula
Avalon Peninsula
The Avalon Peninsula is a large peninsula that makes up the southeast portion of the island of Newfoundland.The peninsula is home to 257,223 people, which is approximately 51% of Newfoundland's population in 2009, and is the location of the provincial capital, St. John's. It is connected to the...
. This work will result in at least one million person hours of engineering and project management employment and 2.5 million person hours of construction employment in the province.
Key components include:
- 230kV AC to 450kV DC Converter station at Gull Island 52°58′28.6"N 61°23′43.1"W
- An overhead HVDC transmission line from Gull Island to the Strait of Belle Isle
- Cable crossing of the Strait of Belle Isle with associated infrastructure
- An overhead HVDC transmission line from the Strait of Belle Isle to the Avalon Peninsula
- 450kV DC to 230Kv AC Converter station at Soldiers Pond 47°25′01.2"N 52°58′38.8"W
Construction of the Labrador-Island Transmission Link would take four years, followed by a year long commissioning project.
Maritime Transmission Link
Emera will construct and own a $1.2-billion underwater power connection from Newfoundland to Nova Scotia, to be known as the Maritime Transmission Link. This will enable future electricity exports to the Maritime provinces and the United States.Major components include:
- Overhead high-voltage AC transmission lines connecting the Newfoundland Island transmission grid to Bottom Brook Converter Station
- Bottom Brook Converter Station (500 MW) AC to HVDC
- Overhead HVDC transmission lines from Bottom Brook to Cape Ray
- Submarine cables across the Cabot StraitCabot StraitCabot Strait is a strait in eastern Canada approximately 110 kilometres wide between Cape Ray, Newfoundland and Cape North, Cape Breton Island. It is the widest of the three outlets for the Gulf of Saint Lawrence into the Atlantic Ocean, the others being the Strait of Belle Isle and Strait of Canso...
to Lingan, Nova ScotiaLingan, Nova ScotiaLingan is a Canadian suburban community in Nova Scotia's Cape Breton Regional Municipality.Lingan is located on the shore of the Cabot Strait, northeast from Sydney, east of New Waterford and northwest of Glace Bay....
(180 km) - Cape Breton Converter Station (500 MW) HVDC to AC, tying into the existing Nova Scotia transmission grid
Transmission Lines
The transmission lines are designed to be:- 203 km long for the 735 kilovolt (kV) line between Gull Island and Churchill Falls; and
- 60 km long for the double-circuit 230 kV line between Muskrat Falls and Gull Island.
Both transmission lines will be supported by lattice-type steel structures and located north of the Churchill River, requiring a cleared right of way approximately 80 m wide in addition to the existing right of way.
Gull Island
The Gull Island facility will consist of a generation station with a capacity of 2,250 MW and the powerhouse will contain five Francis turbineFrancis turbine
The Francis turbine is a type of water turbine that was developed by James B. Francis in Lowell, Massachusetts. It is an inward-flow reaction turbine that combines radial and axial flow concepts....
s. The dam will be a concrete-faced, rock-fill construction 99 m high and 1,315 m long establishing a 213 km2 reservoir with a full supply level of 125 m above sea level. The reservoir will be 232 km long and the incremental area of inundated land will be 85 km2 at full supply level.
See also
- Churchill Falls Generating StationChurchill Falls Generating StationThe Churchill Falls Generating Station is a hydroelectric power station located on the Churchill River in Newfoundland and Labrador. The underground power station can generate 5,428 MW, which makes it the second-largest in Canada, after the Robert-Bourassa generating station. The generating station...
- Hydro-Québec's electricity transmission systemHydro-Québec's electricity transmission systemHydro-Québec's electricity transmission system is an expansive, international power transmission system located in Quebec, Canada with extensions into the Northeastern United States...
- High Voltage DC
- List of HVDC projects