500,000 megawatthours of renewable hydropower—enough to power 70,000 homes or 10,000 businesses each year
Hydro-Québec will deliver renewable energy directly to Maine at a discounted price and accelerate payments within the approved US$258-million New England Clean Energy Connect (NECEC) financial benefits package.
Reduced price for Maine
Through a binding commitment with the state, Hydro-Québec will provide Maine with the following:
- 500,000 megawatthours of renewable hydropower—enough to power 70,000 homes or 10,000 businesses each year.
- Price discount: The wholesale electricity price to Maine will be cut by US$4/megawatthour for 20 years. Based on the forecasted price environment in Maine for 2023, this represents a 12% saving.
This energy will avoid approximately 200,000 tons of CO2 emissions in the region, equivalent to removing 50,000 cars from the road each year. This is in addition to the annual avoided emissions equivalent to removing 700,000 cars from the road that will result from the NECEC project.
“Hydro-Québec stands by Maine in its efforts to recover from the pandemic’s toll,” explained Sophie Brochu, Hydro-Québec’s President and CEO. “We’re pleased to contribute with a commitment that guarantees reliable power deliveries as well as considerable savings.”
Financial contributions beginning this fall
In 2019, Hydro-Québec and its partner committed a total of US$258 million to Maine in the initial NECEC benefits package. The new terms accelerate payments under Hydro-Québec’s financial commitments by over two years. Beginning this October rather than in December 2022, contributions will be made every year for rate relief, broadband expansion, heat pump installation and electric vehicle infrastructure deployment. These accelerated payments will total US$50 million over five years.
The expanded commitments are in addition to the significant economic benefits associated with the construction and operation of the NECEC powerline, including:
- US$18 million each year in host community tax revenues
- More than 1,600 new jobs during line construction
Source: Company Press Release