Canadian Hydropower to Begin Flowing into New England

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Written by Jesse Broehl, Assistant Editor-in-Chief, IIR News Intelligence (Pennsylvania)

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Summary

Full commercial operations will begin January 16 on the 145-mile New England Clean Energy Connect (NECEC) transmission line, which is designed to deliver about 1.2 GW of hydroelectric power into the New England region. The capacity added to the system will change market dynamics for electricity, relieving some demand, and competing against other regional power producers.

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Canadian Hydropower to High-Demand New England Grid

By Friday, January 16, after a decade of local opposition, the 145-mile New England Clean Energy Connect (NECEC) transmission line could be fully energized and begin commercial operations, delivering about 1.2 gigawatts (GW) of electricity into the New England region (ISO-New England grid).

Avangrid (Orange, Connecticut), the developer of the transmission line, told Maine utility regulators earlier this month that operations are scheduled to begin on Friday. Final work is underway to meet that target.

Delivering Needed Power, Changing Market Dynamics

The NECEC extends from the Canadian border to the southern Maine city of Lewiston. The line will primarily deliver Canadian hydropower into ISO-New England, a grid in severe demand for more electricity. Massachusetts is the primary destination for the Canadian hydropower.

Click on the image at right for a map of the NECEC line's route.

ISO-New England is a high-growth, high-demand grid, yet it is more limited than other markets for new power options, since it has a sparse and underbuilt natural gas pipeline system compared to other U.S. regions.  

The additional capacity added to the regional system will incrementally change market dynamics for electricity, relieving some demand and competing against other regional power producers.  

Development of the NECEC Slowed by Opposition

The transmission projects are a case study in how expansion of transmission lines is notoriously difficult in the U.S. Local opposition in Maine hampered the line, since its development started in 2016. Since Massachusetts utilities are the primary offtakers for Canadian hydropower, this contributed to many Maine residents, regional interest groups and stakeholders objecting to the power lines crossing Maine to predominantly service a neighboring state. Some incumbent regional power producers also objected to new competition from low-cost Canadian hydropower.

IIR Energy tracks four transmission projects under the larger NECEC and owned by Avangrid's subsidiary Central Maine Power Company.   

Key Takeaways

• Full commercial operations will begin January 16 on the 145-mile New England Clean Energy Connect (NECEC) transmission line.
• The 1.2 GW of Canadian Hydropower added the system will relieve some demand and compete against other regional power producers.
• Local opposition in Maine hampered the line since its development started in 2016.
• Massachusetts utilities are the primary offtakers for the Canadian hydropower .
• The line is a case study in how expansion of transmission lines is notoriously difficult in the U.S.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).