A new study evaluating the costs of the possible extension of the aging Holyrood Generating Station shows that keeping the facility open beyond 2030 will cost hundreds of millions of dollars.
The Hatch report on the Holyrood plant shows that the cost of extending the life of the facility to 2030 is greater than originally forecast due to inflationary pressures.
The capital costs for 2025-2030 have increased by more than $44 million compared to the original 2022 Life Extension Condition Assessment.
It was hoped that the development of Muskrat Falls would have replaced reliance on the Holyrood generating facility.
But, with the reliability of the Labrador Island Link still in question, there is a possibility that Holyrood’s life might need to be extended to 2035.
NL Hydro says contingency planning is essential, particularly during a time of global uncertainty, and Hatch conducted the latest study for NL Hydro at the request of the Public Utilities Board. Hydro says it’s important to understand any potential impact if Holyrood is required beyond 2030.
The utility says it will continue to manage the system to reduce reliance on Holyrood until “new sources of supply” have been integrated into the system.
