By Eben Perkins, Chief Strategy Officer
As we turn the page on 2025 and look forward to the new year, we are set to see two notable changes to the power grid here in New England. First, New England Clean Energy Connect (“NECEC”) is nearing commercial operation after years of delay and controversy. Second, the region’s largest lithium-ion battery storage system, Plus Power’s Cross Town Energy Storage project in Gorham, Maine, is approaching final completion and full operation. Together, these two new resources are welcome additions to ISO New England’s electricity mix as we face a tight winter market – last month New England saw its highest average spot price for December in the history of the ISO – and reflect important progress in the region’s transition towards a decarbonized power grid.
We will discuss Plus Power’s 175 MW battery storage project in a future CES Insider Newsletter. Focusing on NECEC, the project is a new 145-mile high-voltage direct current transmission line that will deliver up to 1,200 MW of hydropower from Quebec into New England via Maine. NECEC was initially contracted by Massachusetts in 2018 – ratepayers in the Bay State will cover the full cost of the project – but construction of the new line was substantially delayed due to public opposition in Maine that culminated in a 2021 statewide referendum which temporarily blocked the project. After years of legal battles, construction delays, and more than $500 million in cost increases, the transmission line from Quebec into Maine and the other associated components are fully constructed and ready to operate.
NECEC is expected to deliver more than 9,000 GWh of Quebec hydropower into New England annually. For reference, Maine currently consumes between 11,000 GWh and 12,000 GWh of electricity per year and New England consumes between 115,000 GWh and 120,000 GWh annually. As the region continues to grapple with the consequences of not having expanded natural gas pipeline import capacity in the 2010s, which causes major electricity price volatility and cost premiums during the winter months, NECEC should provide some wholesale price relief and reduced reliance on oil-fired generation on the coldest days. Furthermore, as ISO New England seeks to modify its capacity market rules in 2028 through its Capacity Auction Reform Initiative (“CAR”), NECEC could provide an important addition to the ISO’s capacity mix as regional supply is likely going to be reduced through resource accreditation.
While these benefits are welcome at a time when electricity affordability is a front and center issue, it is important to recognize that we are living in a very different energy world today compared to 10 years ago when NECEC was initially conceived. Over the last three years, power exports from Quebec to New England have fallen sharply due to extended drought in northern Quebec that has depleted inflows into its dam reservoirs. This trend has highlighted the risk that New England faces if we assume that out-of-region generation can be the primary piece to our decarbonization puzzle in the coming decades.
Figure 1 presents the annual volumes of power that New England has imported from Quebec over the last 10 years via existing transmission lines. Prior to 2023, annual imports were relatively flat and made up 12-15% of New England’s total annual electricity supply. Figure 1 shows a sharp decline in imports starting in 2023, with Quebec hydropower falling to less than 5% of New England’s regional power mix in 2025.
Figure 1. New England Power Imports from Quebec: 10-Year Lookback
Once NECEC is online, we expect to see total power imports from Quebec rise and return to the levels observed prior to 2023. However, as Hydro Quebec grapples with future risk of drought and other factors as we head into the 2030s, it appears unlikely that non-NECEC power imports from Quebec will follow historical patterns.
CES will be monitoring this issue and would be glad to discuss further upon request.
Photo by: NOK Freelance