Published on October 04, 2024 by Kim Riley

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As part of its just-announced, multi-billion-dollar Transmission Facilitation Program (TFP), the U.S. Department of Energy (DOE) on Thursday selected Avangrid Inc. for a $425 million capacity contract for its Aroostook Renewable Project to connect clean, reliable wind energy from Aroostook County, Maine, to the rest of the state, as well as the New England electric grid. 

The project, proposed by Avangrid, still must be selected by the Maine Public Utilities Commission (PUC), which is conducting a procurement for transmission and wind from northern Maine, as well as go through state and federal permitting processes.

“Transmission line development, and the ability to connect clean, affordable energy to the New England power grid, is one of the most effective tools available to combat climate change while also enabling a stronger, 21st century economy,” said Avangrid CEO Pedro Azagra. “We are grateful for the leadership of President Biden and Secretary Granholm as we continue to work to modernize the nation’s transmission system in Maine and across the country.”

The DOE’s selection comes as the Maine PUC prepares to issue a transmission line request for proposals (RFP) to connect 1,200 megawatts of renewable energy to the New England power grid in Maine. The generation portion is being solicited separately by the Maine PUC, which is expected to announce winning bids in 2025.

Avangrid said it intends to participate in the transmission line RFP process and will include the awarded $425 million capacity contract as part of its proposal.

The $425 million award represents one of the largest federal investments in energy development in Maine’s history and will help support clean energy transition goals by facilitating transmission line development to unlock high-quality renewable energy for the region, according to Avangrid.

Construction of the high-voltage line will also relieve transmission constraints that have stalled the development of renewable resources in the northern part of the state for years, said Avangrid, which also plans to invest more than $15 million for disadvantaged communities in Maine. 

Other benefits include job creation, increased property taxes for local communities, rural broadband investments, and a stronger power grid, the company said.

Jack Shapiro, Climate & Clean Energy Director at the Natural Resources Council of Maine, said that unlocking the enormous wind resource in Aroostook County will deliver economic benefits to this region, and is a necessary step toward Maine becoming energy independent. 

“Responsible development of new homegrown clean energy sources like wind and solar creates good-paying jobs, helps to stabilize electricity prices, and reduces the air pollution that is fueling climate change and harming our health,” said Shapiro. “We look forward to reviewing specific project proposals and will evaluate them based on their ability to deliver lower-cost electricity with indisputable climate and economic benefits while minimizing the impact on local communities and the natural environment as much as possible.” 

According to the DOE, capacity contracts of this nature are meant to boost investment and catalyze the nationwide development of transmission lines across the country. The TFP initiative is funded by the Bipartisan Infrastructure Law, which President Joe Biden signed into law in 2021.