Construction on the New England Clean Energy Connect (NECEC) transmission project in Maine will recommence next week following delays caused by legal challenges and escalating costs. The project, a joint venture between Avangrid and Hydro-Quebec, aims to deliver 1,200 megawatts of Canadian hydropower to the New England power grid, enough to power approximately one million homes.
Originally estimated at $1 billion, the project's cost has now ballooned to $1.5 billion due to inflation and construction setbacks resulting from litigation. Avangrid CEO Pedro Azagra Blazquez addressed the cost increase during an earnings call, stating that discussions are underway with Massachusetts utilities to determine how these additional expenses will be shared.
Construction equipment clearing land for the NECEC project. (AP Photo/Robert F. Bukaty, File)
Despite securing all necessary regulatory approvals, the project has faced numerous obstacles. The Maine Department of Environmental Protection reinstated permits in May after a protracted legal battle, but work remained stalled due to cost concerns. The Massachusetts Legislature is currently working on legislation to allow renegotiation of transmission service agreements to address the increased expenses.
The 145-mile transmission line will primarily follow existing utility corridors, connecting Lewiston, Maine, to the Canadian border. The legal disputes centered around a new 53-mile section in western Maine. Initial work will restart on August 3 at a Lewiston substation, according to Azagra, who emphasized the project's importance in reducing New England's reliance on fossil fuels and stabilizing energy prices.
