Opening new energy highways to the U.S.

New England Clean Energy Connect (NECEC) project

Champlain Hudson Power Express (CHPE) project

Agreements were signed in November 2021 for the construction of a direct-current line running some 58 km between Hertel substation (Québec) and an interconnection point near the Canada/U.S. border and a 545-km directcurrent line between this point and Astoria substation (New York), with a capacity of approximately 1,250 MW, as well as the sale of environmental attributes. Approval from the New York Public Service Commission for the agreement with respect to the sale of environmental attributes was obtained in April 2022. Construction work began late in the year in the U.S., while Canadian authorizations and construction permits are expected in 2023. The new interconnection is unique in several respects: not only does it include approximately 600 km of underground and underwater lines, but it will also carry up to 10.4 TWh of renewable energy every year, enough to power over a million homes.

Another interconnection line, with an approximate capacity of 1,200 MW, is planned to connect Maine’s power system to Appalaches substation. It will deliver, every year for 20 years, up to 9.45 TWh of clean, renewable energy to Massachusetts and up to 0.5 TWh to Maine. In Canada, the main approvals for the line have already been secured; the permitting process is still underway for certain sections of the route. Construction work in Maine was suspended following an unfavorable referendum outcome on the project in November 2021 and the passage of a new law as a result. Hydro-Québec also suspended clearing work and the construction of access roads in Québec. Legal proceedings in Maine courts were instituted and continued in 2022. Some legal proceedings have already resulted in positive outcomes for the project. In particular, on August 30, the Maine Supreme Judicial Court rendered a decision under which it ordered the case to be remanded to the trial court and stated that a portion of the new law would be unconstitutional if Hydro-Québec’s partner in Maine had obtained all necessary authorizations before it began construction. The trial could take place in 2023.

Exports in 2022

Sales of our renewable energy to neighboring markets, namely New England, New York State, Ontario and New Brunswick, remained strong. They totaled 35.6 TWh, at an average price of 8.2¢/kWh (including hedging effect), which is 62% higher than the 2021 average. Exports contributed $2,912 million to our 2022 revenue, an increase of 59%.