Iberdrola Group subsidiary Avangrid has completed and energised the New England Clean Energy Connect (NECEC) project, a 145-mile (233km)-long high-voltage direct current (HVDC) transmission line in New England, US.
The NECEC project introduces 1.2GW of hydropower drawn from Canada into regional transmission organisation (RTO) ISO-New England’s system, with the aim of improving grid reliability and reducing energy costs across the region. Launched in 2018, the transmission project entailed an investment of $1.65bn.
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The hydropower carried by it is expected to meet nearly 10% of annual demand in Massachusetts.
The transmission line extends from the Quebec-Maine border to a newly constructed converter substation in Lewiston, Maine. From this point, a 1.2 mile-long alternating current line connects to the existing substation at Larrabee Road.
The project utilises advanced technology including an HVDC converter system, which enables efficient transmission of electricity over long distances and facilitates the connection of networks operating asynchronously.
It also features two static synchronous compensators, each with a capacity of 300 megavolt-amperes reactive, installed at the Buxton substation in Maine. These devices maintain grid voltage and improve supply quality during periods of high demand.
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By GlobalDataThe Massachusetts Department of Public Utilities estimated that NECEC will deliver $3.38bn in savings to ratepayers across New England over a 20-year period under existing contracts.
The department has also identified improvements in reliability, environmental impact mitigation and economic development associated with the transmission project.
Host communities are set to receive approximately $23m in property tax benefits during the first year, while Avangrid projects contributions amounting to hundreds of millions of dollars for community initiatives and programmes over time.
Long-term fixed-rate agreements underpin the financial structure, including a 40-year contract with Hydro-Québec. Additionally, 20-year contracts involving Massachusetts utilities and Hydro-Québec support stable revenue streams and reduce exposure to market volatility.
Avangrid stated: “With major execution risks including permitting, legal challenges and construction fully resolved, the NECEC has transitioned from development to revenue generation.
“Coupled with its measurable environmental benefits and alignment with relevant ESG [environmental, social and governance] mandates, the project is also positioned for premium valuation among sustainability-focused investors, making it one of the most resilient and attractive infrastructure assets in the region.”
