Hydro is continuing to invest in the infrastructure that powers our province, with two important Bay d’Espoir projects now approved by the Public Utilities Board.

Penstock 3 Refurbishment Approved: Onsite Construction to Begin in 2027

The PUB has approved Hydro’s application for capital expenditures to complete section replacement and weld refurbishment on Penstock 3 at Bay d’Espoir. Penstock 3 serves Units 5 and 6 and has been identified as a priority for refurbishment as part of our ongoing work to maintain and modernize critical generation infrastructure.

The 1,200-metre penstock is made up of a series of steel sections that vary in length and thickness. The approved project will replace approximately 335 metres of steel section and complete detailed inspection and refurbishment work on approximately 792 metres of existing penstock, including remediation of deteriorated welds or steel where required. Supporting work will include protective coating, backfilling, drainage system upgrades, and installation of pressure monitoring systems.

Engineering work related to line relocation, site clearing, and surveying and staking for pole locations has been completed. Onsite construction is forecasted to begin in 2027.

This project builds on the successful Penstock 1 refurbishment and replacement project, which was approved by the PUB in 2023 and completed in December 2025, on time and on budget. The Penstock 3 refurbishment will involve a similar scope of work and construction schedule, continuing Hydro’s planned approach to sustaining key assets at Bay d’Espoir.

Unit 7 Life Extension Project Receives PUB Approval

In April, the PUB also approved capital expenditures of up to $66.3 million for the life extension of Unit 7 at Bay d’Espoir. Unit 7 is the largest generating unit at the facility, with the ability to produce 154 MW of electricity, and has been serving customers since 1977.

The approved work will help extend the reliable service life of the unit by at least 25 years through inspection, refurbishment, and replacement of key components. This includes major work on the turbine runner, stator and rotor systems, wicket gates, head cover, bottom ring, and operating mechanisms.

Crews undertook several months of work for a major refurbishment of unit 7 at the Bay d’Espoir generating plant in 2019. The unit was completely dissembled for the project, including removal of the rotor (right) and cleaning the shaft coupling (center and left).

With regulatory approval now in place, Hydro can continue advancing the project into its next phase. Work is currently anticipated to begin in 2028.

Together, the Penstock 3 Refurbishment Project and Unit 7 Life Extension Project represent meaningful progress on important investments in Bay d’Espoir, helping maintain safe, reliable electricity service for customers while supporting the long-term performance of one of the province’s most important generating facilities.

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