Avangrid would like to share some fantastic news! The New England Clean Energy Connect (NECEC) transmission project has advanced beyond development and is currently raking in ratepayer dollars. The company has successfully addressed every major execution risk in turn. Now having clearly overcome permitting, legal challenges and construction issues a major milestone.
Originally launched in 2018 by Central Maine Power (CMP), the NECEC project has quickly ballooned into a $1.65 billion investment. It is supposed to provide 1.2 gigawatts of Canadian hydropower directly to the Regional Transmission Organization, ISO-NewEngland. The project will produce enough electricity to satisfy almost 10% of Massachusetts’ yearly energy needs. This will enhance overall grid reliability and reduce regional energy costs.
Corporate parent Avangrid noted the strategic importance of the project. As they put it, “With all major execution risks—including permitting, legal challenges and construction—fully resolved, the NECEC has now transitioned from development to revenue generation. This transition is a significant milestone for the project as it starts to receive financial returns from the project through long-term contracts.
The NECEC features two static synchronous compensators that are installed at the Buxton substation in Maine. Each one of these compensators has a massive capacity of 300 megavolt-amperes reactive. These components are key to managing and stabilizing the power flow and maintaining the reliability of the energy grid.
The 1,200-megawatt transmission line carries power from the Quebec-Maine border to a newly built converter substation in Lewiston, Maine. This infrastructure is underpinned by a 40-year contract with Hydro-Québec and 20-year contracts with Massachusetts utilities. These agreements are projected to create predictable, long-term revenue streams for the state and protect the state from risk of market volatility.
Beyond its energy contributions, the NECEC is set to deliver an array of economic benefits to impacted communities. Host communities will receive about $23 million in property tax benefits in year one of operation. According to Avangrid, the NECEC will produce hundreds of millions of dollars in savings over the long term. These dollars will directly fund each community’s unique initiatives and programs.
The NECEC project would be a historic step forward for renewable energy in New England. In addition to demonstrating Avangrid’s commitment to sustainable, environmentally responsible business practices and robust community support.