NECEC Project: Connecting Canada, US With Clean Energy

Iberdrola, through its American subsidiary Avangrid, has received the final green light for the New England Clean Energy Connect (NECEC) transmission line, a major project connecting Canada and the United States. The Maine Department of Environmental Protection’s approval completes the regulatory requirements for one of the Northeast’s most ambitious energy infrastructure initiatives.

The NECEC line will transport hydroelectric power from Quebec to New England, primarily reaching Massachusetts, along a 233km high-voltage corridor with a capacity of 1,200MW, enough to power roughly 1.2 million homes. The project is also expected to cut annual CO2 emissions by up to 3.6 million mt, equivalent to removing 700,000 cars from circulation, and has already supported the creation of more than 1,600 construction jobs.

NECEC is expected to be fully operational by the end of the year, strengthening the resilience and reliability of New England’s power network, supporting lower electricity costs, and driving economic and social benefits throughout the region.

The United States is a strategic focus for Iberdrola under its 2028 growth strategy, announced last September, which outlines investments exceeding €16 billion (US$17.3 billion), mainly in electricity and gas infrastructure. The plan emphasizes maintaining, modernizing, and expanding power and gas networks in New York and New England, serving over 3.4 million customers.

Iberdrola Sells Mexican Assets for US$4.2 Billion

In July, Iberdrola agreed to sell its Mexican operations to COX ABG Group for approximately US$4.2 billion. This divestment aligns with the company’s broader €55 billion (US$62.8 billion) investment strategy for electricity transmission and distribution networks, primarily in the United States and the United Kingdom.

The sale included 15 power plants with a combined capacity of 2.6GW, ongoing commercial operations, and a portfolio of generation projects under development. Of the operational capacity, 1,368MW comes from combined cycle and cogeneration plants, and 1,232MW from wind and photovoltaic assets. COX ABG Group plans to operate these assets and advance the development pipeline in line with Mexican regulatory frameworks. Additional payments to Iberdrola will be made as development projects are completed, beyond the initial US$4.2 billion.

Although Iberdrola’s exit surprised many, given its status as a major energy investor, President Claudia Sheinbaum emphasized that the move reflects corporate strategy and does not indicate any conflict with Mexico.

Grupo Cox Announces New Investment, Focus on Mexico

Following the acquisition, Grupo Cox unveiled a US$6.4 billion investment plan, with nearly half dedicated to water and renewable energy projects through 2028. The plan also includes the divestment of certain non-strategic assets. The company stated that the purchase of Iberdrola’s Mexican assets elevates Mexico to the most strategic market in its global portfolio, solidifying Grupo Cox’s position as the country’s fourth-largest electricity generator.

“While we have six or seven strategic markets, Mexico now clearly stands out as the most important within the group,” said Riquelme Vives, Founder, Grupo Cox.

Looking ahead, Moreno projected that by 2030, Grupo Cox will invest more than US$10 billion in Mexico, encompassing both the Iberdrola acquisition and new developments in energy and water infrastructure.