After delays, massive cost overruns and the COVID-19 pandemic which added to both, power generated at the Muskrat Falls hydroelectric site is finally flowing into the electricity grid.
Nalcor Energy announced the news Wednesday. According to a release from the provincial Crown corporation, the first generating unit was successfully tied into the Labrador electricity grid Tuesday evening as part of a testing period.
"Reaching this milestone has not been without its challenges and setbacks."
Nalcor said the testing will continue in the coming weeks before the unit is put into service later in the fall. As part of the tests, the unit will be put on and off the grid until Nalcor is ready to turn the unit over as fully operational.
"Reaching this milestone has not been without its challenges and setbacks," Nalcor said in the release. "The people of the province depend on us and, despite the challenges of COVID-19, we have pressed on, kept people safe and together achieved this milestone.
Once the commissioning period is completed, power from Muskrat Falls will be added to the Labrador electricity grid. The second unit is expected to generate power later this year, with the third and fourth units due to come online in 2021. The release noted there will be a further project update in the next week.
In May, Nalcor CEO Stan Marshall indicated the COVID-19 pandemic would add approximately $400 million to the project's cost and delay its schedule by about four months. The cost of Muskrat Falls is now believed to be in excess of $13 billion. The first payment of $200 million owed on the $7.9-billion loan guarantees the federal government issued to the province to finance the project is due Dec. 1.
