Avangrid Completes New England Clean Energy Connect, Energizing Regional Grid and Advancing Sustainability Goals
Avangrid, Inc., a leading U.S. energy company and a member of the global Iberdrola Group, today announced that the New England Clean Energy Connect (NECEC) project is officially complete and energized. The milestone marks a significant advancement in regional clean energy infrastructure, delivering one of New England’s largest sources of baseload energy while enhancing grid reliability, reducing electricity costs, and supporting the region’s long-term sustainability objectives. The project’s commercial operation date is January 16, 2026.
The NECEC project introduces 1,200 megawatts (MW) of new hydropower capacity into the ISO-New England system, representing a major step forward in diversifying the region’s electricity supply. By integrating this clean, renewable energy, the NECEC strengthens grid stability and provides a reliable hedge against extreme weather events, which increasingly threaten energy systems across the Northeast. Beyond reliability, the project’s low-cost, long-term energy supply offers predictable pricing, helping to mitigate fuel price volatility and provide wholesale electricity cost savings to consumers throughout New England.
The Massachusetts Department of Public Utilities has assessed the NECEC’s long-term economic impact and determined that the project will save New England ratepayers approximately $3.38 billion over the 20-year term of its current contracts. In addition to direct financial savings, the Department highlighted numerous qualitative benefits, including improved grid reliability, reduced environmental impacts, and positive contributions to regional economic development. The Department concluded that the NECEC’s power purchase agreements (PPAs) represent a cost-effective mechanism for procuring low-cost, clean energy on a long-term basis, benefiting both consumers and the broader energy market.
The project’s transmission infrastructure is a cornerstone of its ability to deliver clean energy across state lines. NECEC comprises a 145-mile high-voltage direct current (HVDC) transmission line connecting the Quebec-Maine border to the newly built Merrill Road converter substation in Lewiston, Maine. Additionally, a 1.2-mile, 345-kV alternating current (AC) transmission line links the Merrill Road substation to the existing Larrabee Road substation. These components ensure the efficient transfer of hydroelectric power from Quebec to New England, supporting both regional energy needs and long-term sustainability targets. The project also provides tangible benefits to local communities, with estimated first-year property tax revenues of approximately $23 million for municipalities along the transmission corridor.
The NECEC’s completion reflects Avangrid’s steadfast commitment to transparency, environmental stewardship, and community engagement throughout the project lifecycle. Over the past several years, the company has worked closely with federal and state authorities, local stakeholders, and community organizations to ensure the project meets rigorous environmental, regulatory, and social standards.
Significant milestones in the project’s development include:
- Regulatory and Government Approvals: NECEC secured all major state and federal permits and approvals, including the U.S. Department of Energy’s Presidential Permit. The project was authorized under successive administrations, including those of President Donald Trump, Massachusetts Governors Maura Healey and Charlie Baker, and Maine Governors Janet Mills and Paul LePage. The Massachusetts legislature also approved a law authorizing contract price modifications, signed by Governor Healey, ensuring the project’s financial viability and regulatory compliance.
- Legal and Electoral Challenges: The project successfully navigated multiple legal, regulatory, and electoral challenges, with courts consistently affirming NECEC’s compliance and public benefits. These outcomes reinforce the robustness of the project’s development process and highlight its resilience in the face of complex regulatory landscapes.
- Environmental Conservation: NECEC is paired with a major land preservation initiative that permanently protects approximately 50,000 acres of Maine wilderness, creating one of the region’s largest contiguous conservation areas. This conservation effort safeguards critical wildlife habitats, maintains biodiversity, and promotes sustainable forestry practices, demonstrating Avangrid’s commitment to environmental stewardship alongside energy development.
The financial structure of NECEC is designed for stability and long-term success. The project is anchored by long-term, fixed-rate contracts with creditworthy utility counterparties, ensuring predictable cash flows and a fair return on investment over its operational life. Key agreements include a 40-year Transmission Service Agreement with Hydro-Québec and 20-year contracts with Massachusetts utilities and Hydro-Québec, creating secure, inflation-protected revenue streams that minimize exposure to market volatility. Capital expenditures for NECEC totaled approximately $1.6 billion, with contract provisions designed to recover cost increases resulting from regulatory and electoral challenges. This approach ensures the project delivers anticipated economic value and long-term benefits to both investors and ratepayers.
With major execution risks—including permitting, legal challenges, and construction—fully resolved, NECEC has successfully transitioned from a development project to a revenue-generating, operational energy asset. The project aligns with environmental, social, and governance (ESG) mandates, positioning it as an attractive investment for sustainability-focused investors. Its measurable environmental benefits, coupled with its long-term financial stability, make NECEC one of the most resilient and valuable infrastructure projects in the region.
The project represents a significant contribution to New England’s clean energy transition, providing a reliable, low-cost alternative to fossil-fuel-based electricity and helping the region meet its decarbonization goals. By supplying a predictable source of renewable energy and mitigating the impact of volatile fuel prices, NECEC strengthens New England’s energy independence and supports economic growth.
Avangrid’s successful completion of the NECEC project underscores the company’s ability to deliver large-scale, complex energy infrastructure that balances technical innovation, environmental responsibility, and community benefit. As the project moves into commercial operation, it stands as a model for regional clean energy development, demonstrating how coordinated planning, strategic investment, and rigorous adherence to environmental and regulatory standards can yield lasting benefits for consumers, communities, and the broader energy ecosystem.
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