Montreal: Massachusetts utilities announced January 25 that they had selected a Hydro-Québec proposal to supply a large quantity – 9.45 TWh – of firm clean energy, which will help the state enhance reliability and contribute to its greenhouse gas reduction requirements.
The Northern Pass Transmission project was selected to deliver 100% hydropower by the Massachusetts evaluation team after a competitive solicitation process. The next steps are to negotiate long-term contracts and obtain regulatory approval of agreements to ensure the delivery of such a large volume of power for 20 years.
“We are pleased and proud to have been selected,” said Éric Martel, President and Chief Executive Officer of Hydro-Québec. “This is a major milestone in the energy transition underway in the Northeast, one that confirms the high value of Hydro-Québec’s clean and reliable energy. We’re confident negotiations with Massachusetts will lead to an agreement that is beneficial to all parties.”
Hydro-Québec says the long-term agreement with Massachusetts would be its most important contract since it began developing its export markets.
Hydro-Québec developed the proposal alongside Eversource Energy. The project involves the construction of a 1090 MW, 320-kV direct-current transmission line about 79 km long. This line will be extended into the US and will connect Des Cantons substation in Val-Joli, Quebec to Franklin substation in southern New Hampshire. Hydro-Québec will invest over $680 million for the Québec portion of the transmission project, consisting of construction of a new transmission line and equipment additions in the Des Cantons substation. Equipment that converts alternating current to direct current will be added to Des Cantons substation. The existing perimeter of Des Cantons substation will not be modified.
The U.S. Forest Service announced January 5 that it will issue a special issue permit for Northern Pass to bury 11 miles of power line within the White Mountain National Forest, New Hampshire.
The New England Power Generators Association (NEPGA) has opposed the transaction saying that it is based on faulty economics and would undermine competitive markets. NEPGA President Dan Dolan said, “Providing long-term guarantees to the two largest utilities in the region is the wrong way forward for Massachusetts.”
In late January regulators in the state of New Hampshire delivered a setback by rejecting the siting plan submitted by Hydro-Quebec and Eversource. However Hydro-Quebec CEO Eric Martel remains confident. He told CBC’s Daybreak, “But we still believe the [Northern Pass] project is going to happen.” The regulatory decision can be appealed and alternative transmission routes may be proposed. Hydro-Quebec said that it expected to start work on the interconnection in the fall of 2018.