Avangrid, Inc., a member of the Iberdrola Group, has completed and energized the New England Clean Energy Connect (NECEC) project, bringing up to 1200MW of hydropower into the ISO New England electricity system. Commercial operations began on January 16, 2026.
The New England Clean Energy Connect project is designed to deliver firm, baseload renewable electricity from Quebec in Canada into the northeastern US. The new supply is expected to strengthen grid reliability, reduce exposure to fuel price volatility, and support system performance during extreme weather events.
The Massachusetts Department of Public Utilities previously estimated that the project would generate approximately US$3.38bn in savings for New England electricity customers over the 20-year duration of the current power purchase agreements. The agency also cited additional benefits related to grid reliability, environmental impacts, and regional economic development, concluding that the contracts represented a cost-effective approach to securing long-term energy supply.
The New England Clean Energy Connect project includes a 145-mile high-voltage direct current (HVDC) transmission line connecting the Quebec–Maine border to the Merrill Road converter substation in Lewiston, Maine. The project also includes a 1.2-mile 345kV alternating current (AC) transmission line linking the Merrill Road converter station to the existing Larrabee Road substation.
According to Avangrid, host communities along the transmission corridor are expected to receive approximately US$23m in property tax revenue during the first year of operation.
The NECEC project received major state and federal approvals under US President Donald Trump, Massachusetts Governors Charlie Baker and Maura Healey, and Maine Governors Paul LePage and Janet Mills. These approvals included the US Department of Energy Presidential Permit and authorisation from the Massachusetts Legislature to modify pricing terms, which was signed into law by Governor Healey.
The project faced multiple legal and regulatory challenges, including ballot initiatives and court proceedings. Courts ultimately upheld the project’s permits and regulatory compliance, allowing construction and commissioning to proceed.
As part of its development commitments, Avangrid supported the permanent conservation of approximately 50,000 acres of forestland in Maine. The conservation effort is intended to protect wildlife habitat, preserve biodiversity, and support sustainable forestry practices.
The financial structure of the New England Clean Energy Connect project is supported by long-term contractual agreements, including a 40-year Transmission Service Agreement with Hydro-Québec and 20-year power purchase agreements with Massachusetts utilities and Hydro-Québec.
Total capital investment in the project reached approximately US$1.6 billion. Contract provisions allow for recovery of certain cost increases related to project delays and legal proceedings, helping stabilize long-term revenue performance.
