Image for illustrative purposes

The Champlain Hudson Power Express Champlain Hudson Power Express has officially reached commercial operation ahead of schedule, marking a major milestone for New York’s clean energy transition.

Developed by Transmission Developers Inc. and backed by Blackstone Inc., the 1,250-megawatt high-voltage direct current transmission line delivers hydropower from Hydro-Québec into New York City’s power grid. Construction began in November 2022.

At full capacity, the project can supply approximately 20% of New York City’s electricity demand, significantly strengthening the region’s low-carbon energy supply.

The line officially entered commercial operation on May 13, 2026, beating its originally scheduled June timeline after completing testing ahead of schedule. As a result, it is now eligible to participate in both the May energy market and the July capacity market operated by the New York Independent System Operator. Early market entry is expected to enhance grid reliability during periods of peak demand, particularly ahead of summer heat waves.

“Because we finished testing early, we are able to participate in the May energy market,” said Peter Rose, senior director of stakeholder relations at Hydro-Québec, noting that early availability can help support higher demand periods.

The project also holds a long-term contract with the New York State Energy Research and Development Authority, which begins June 1, with an initial strike price of $97.50/MWh.

Kevin Lanahan, senior vice president at NYISO, confirmed the project has met all required tariff and testing requirements, enabling participation in upcoming capacity auctions and energy markets.

A large portion of the 339-mile, 400 kV underground HVDC line is directly buried beneath the Hudson River and Lake Champlain, representing one of the most advanced underground transmission deployments in North America. Beyond its immediate capacity benefits, the project is also viewed as a platform for enabling large-scale integration of Canadian hydroelectric resources and future offshore wind generation, effectively strengthening cross-border and coastal energy coordination.

Early market participation may allow the system to transact during periods of elevated electricity prices, particularly during summer peak demand in New York City, improving both supply stability and system flexibility.

Source: spglobal.com