Avangrid Awarded $425M Federal Capacity Contract for Maine Transmission Project

October 03, 2024 at 06:30 AM EDT

Capacity contract granted through the Transmission Facilitation Program by the U.S. Department of Energy Grid Deployment Office

Award represents one of the largest federal investments in energy development in Maine’s history

Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, announced that the U.S. Department of Energy (DOE) selected Avangrid for a $425 million capacity contract for its Aroostook Renewable Project. The award is part of the DOE’s Transmission Facilitation Program (TFP).

The announcement by DOE comes as the Maine Public Utilities Commission (MPUC) prepares to issue a transmission line Request for Proposals to connect 1,200 megawatts of renewable energy to the New England power grid in Maine. The generation portion is being solicited by the MPUC separately. Avangrid intends to participate in the transmission line RFP process and will include the awarded $425 million capacity contract as part of the company’s proposal.

This $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. Construction of this high-voltage line will also relieve transmission constraints that have stalled the development of renewable resources in Northern Maine for years. Avangrid 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.

“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 Pedro Azagra, Avangrid CEO. “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.”

Capacity contracts of this nature are meant to boost investment and catalyze the nationwide development of transmission lines across the country. The initiative is funded by President Joe Biden’s Bipartisan Infrastructure Law, passed in 2021.

The Maine PUC will likely announce winning bids in 2025.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $46 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.