New England Clean Energy Connect (NECEC)

AVANGRID Nota — Iberdrola Group's subholding company in the United States — supplies 100% renewable hydroelectric energy at a fixed rate to distribution companies in Massachusetts as part of the New England Clean Energy Connect (NECEC)External link, opens in new window.  project, carried out in conjunction with the Canadian utility Hydro-Québec. The project, launched in 2018 and in commercial operation since 2026, has completed its construction after obtaining all federal and state permits and authorisations.

With an investment of $1.65 billion, NECEC transmits renewable energy from Quebec (Canada) to Maine (USA), as well as to the shared New England grid, thanks to the construction of a 233 km high-voltage line with 1,200 MW transmission capacity. 

The positive impact of NECEC directly benefits local communities and the regional economy, contributing hundreds of millions of dollars to community initiatives and programs in.

 SEE INFOGRAPHIC: New England Clean Energy Connect, in detail [PDF] External link, opens in new window.

 Project map [PDF] External link, opens in new window.

Reducing energy costs in Maine and New England 

The agreements with Massachusetts electricity distributors are for a 20 year supply of clean, reliable, baseload energy (approximately 9.45 terawatt/hours (TWh) per annum). The electricity is produced by the extensive fleet of Hydro-Québec hydroelectric power plants and reduces dependence on fossil fuels in the New England region.

The NECEC supplies clean energy to 1.2 million New England households. Under this long-term arrangement, customers benefit from stable prices for the next 20 years, avoiding price rises during peak demand in summer and winter. In fact, NECEC reduces customer spending on electricity by $3.38 billion over the next 20 years. Customers reap significant qualitative benefits under the contract in the areas of reliability, environmental impact mitigation, and economic development. In addition, the year-one property tax benefit to host communities is approximately $23 million.

Social contribution of NECEC

In Maine, NECEC created an average 1,600+ jobs a year during the construction phase and contributed to the state economy by increasing GDP by $573 million. In Massachusetts, lower energy costs increase GDP by more than $243 million per annum, having created more than 2,000 jobs.

Furthermore, the NECEC reduces annual carbon emissions by 3.1 million metric tons — the equivalent of taking 660,000 cars off the road.

The project generates nearly $1 billion in economic benefits in Maine, thanks to the jobs created during construction, electricity cost savings, and local property taxes. The contracts, which have a duration of 20 years in Massachusetts, could be extended until 2045. On the other hand, the separate agreements with Hydro-Québec could extend the delivery of clean energy benefits to Maine and the region to 2063 or beyond.

In summary, NECEC has lead to improved infrastructure in the state of Maine — which has made the electricity service more secure —, has reduced prices for customers — including a fund for the most vulnerable customers —, has provided subsidies for deploying charging infrastructure for electric vehicles, has supported economic development for tourism, and has funded education, broadband, heat pumps and land conservation.

Environmental aspects 

The 233-kilometre transmission line was built on land owned or managed by Central Maine Power External link, opens in new window., one of AVANGRID's distributors. Two-thirds of the project's route follows existing power lines created for the state's hydroelectric industry almost a century ago, while the remaining third of new construction runs through forestry land, where a new conical vegetation clearing technique was used. There have also been significant environmental revisions made to the project after considering extensive input from local communities and environmental groups.

They include narrowing the width of the new section of corridor from 150 feet to 54 feet, guaranteeing access for hunting and snowmobiling, and implementing a prohibition of herbicide and pesticide use within the new corridor segment. Central Maine Power is also committed to conserving more than 50,000 acres of Maine forestland as part of the stipulated agreement between the company and state.

Other projects finalised 

The NECEC project is Iberdrola's second connection between Canada and the United States. The first was performed in the framework of the Maine Power Reliability Project (MPRP), an initiative that involved building and upgrading 800 kilometres of transmission lines and commissioning or improving 13 substations. This project received an investment of $1.4 billion and created an average 2,100 jobs per year until it was completed in 2015.

The MPRP helped to improve service quality and laid the foundations for future inclusion of renewable capacity in the grid, as well as greatly benefiting the community and economy of the state of Maine.

Iberdrola, a world leader in smart grids

Smart grids are essential for the support of the electrification of the economy and to ensure that renewable energy reaches consumers safely and efficiently. At Iberdrola, we operate one of the world’s most important distribution systems and continue to work on its modernisation, digitalisation and automation. For this reason, the Networks business is now a core part of our Strategic Plan, with an investment of €37 billion planned for 2028 across distribution and transmission.