Nalcor announces another setback for Muskrat Falls transmission software

Nalcor Energy has announced yet another setback for controversial hydroelectric project Muskrat Falls.

In a statement released on its website Friday as an update on transmission challenges, the Crown corporation said there's been another change in the delivery schedule for the specialized control and protection software for the Labrador-Island Link — or LIL — from Muskrat Falls to the Avalon Peninsula.

Efforts to fix three malfunctioning motors at a critical switchyard near Soldiers Pond are also ongoing.

The computer software is being developed by General Electric. Delivery of an interim version was scheduled for early February, with the final version, according to documents, scheduled for June.

However, Nalcor says GE is not making progress as quickly as scheduled, and the company is now working toward delivery of the interim software at an unspecified time "in 2020," which could add as much as six months to the schedule.

That's significant, because commercial power from the first of four turbines at Muskrat Falls is expected in March, according to documents. Full commercial power power of up to 824 megawatts is scheduled for the end of this year.

It's another setback to plans to displace costly and polluting oil-fired generation at the Holyrood thermal plant with renewable energy from Muskrat.

Nalcor says it should receive an updated schedule from GE in about two weeks.

Delays are 'disappointing': Nalcor

The software is critical for the safe and efficient operation of the 1,100-kilometre link, and Muskrat's integration into the provincial power grid.

But GE has struggled to deliver on its contract and has missed several deadlines.

In its statement, Nalcor described the delays as "disappointing."

CBC has requested an interview with Nalcor. A spokesperson for the corporation said Friday CEO Stan Marshall was unavailable.

But Opposition natural resources critic Dave Brazil is demanding answers.

"Nalcor calls this disappointing, but in fact it's disturbing," Brazil stated in a news release issued Friday.

"What are the implications of this delay? What are the costs? What are the alternatives? Where is the minister to answer questions about this latest news release?"

Meanwhile, Nalcor said the three malfunctioning synchronous condensers at Soldiers Pond are expected to be in service by June. The condensers are three large motors that help maintain the reliability of the electricity grid once the Labrador-Island Link is in service.

Nalcor has previously acknowledged that two of the motors "have not been successfully rotated," while a third experienced "unacceptable vibration levels" during testing.

GE also has the contract for these condensers, and has told Nalcor they should be ready for service by June. 

"The units do not need to be in service to flow power over LIL for testing," the Nalcor statement reads.

Opposition wants answers

The repeated delays and setbacks have raised questions about whether the current final forecast cost of $12.7 billion can be maintained.

Marshall has been repeatedly asked that question in recent months, and has said the delays have been factored into the cost.

Brazil, meanwhile, said the software and synchronous condenser challenges "may have serious consequences for the cost and timeline of the project. But the government is not telling people what impact these issues will have on first power, full power, or the ability to export power to the North American grid."

Brazil noted that "various experts" are suggesting there could be upwards of a two-year delay. 

"It has been suggested to me by various individuals, and it has been written by an independent engineer, that this issue could extend the power supply delay for two years. If this is the case and the minister is not being transparent, then it is simply unacceptable. It has also been suggested that Nalcor has ignored expert advice. If this is true, it is also unacceptable," Brazil stated.

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