Making Interregional Transmission Interconnections Easier
Key Highlights
- In 2025, renewable energy sources surpassed coal as the primary power generation method, with a focus on expanding low-carbon electricity worldwide.
- Major HVDC projects like NECEC, CHPE, and SunZia have successfully increased clean power capacity, reducing carbon emissions and providing substantial economic savings.
- Hitachi Energy's HVDC Light technology offers high capacity, flexibility, and underground cabling options, supporting urban and remote renewable projects globally.
- Interregional transmission expansion is projected to save billions annually by shifting low-cost renewable power to high-cost markets, boosting competition and lowering prices.
- Ongoing upgrades and new HVDC projects ensure long-term reliability and adaptability of the power grid, accommodating the growing share of renewable energy sources.
The data from 2025 is finally available. It has been collected, analyzed, and digested, which has resulted in a flurry of white papers, technical studies, and economic evaluations from researchers. The analysis covered everything from rapid demand growth to escalating greenhouse gas emissions, but it was moving inexpensive, renewable power to the marketplace that attracted “Charging Ahead’s” attention. Some analysts felt this was a key element for modernization challenges because more interregional interconnections were needed to allow surplus power from one area to flow to another. It would provide a more diverse resource base that could coordinate markets between different areas of the power grid.
The Energy Institute, in partnership with Ember, published their Statistical Review of World Energy in early July. It’s the 75th edition and it provides a comprehensive global view of the energy data generated in 2025. The review confirmed that worldwide “Electricity is growing in prominence in the energy system, with electricity demand continuing to grow faster than total energy supply, rising 3% year-on-year.” Interestingly, the review revealed that, “In 2025, rising electricity demand was met entirely by low-carbon sources, with renewables and hydro overtaking coal as the largest source of generation.” Other studies pointed out that access to cheaper renewable resources is not equal across the power grid, which resulted in some regions being overburdened by costly fossil-based generation.
The EIA (U.S. Energy Information Administration) reported that renewable energy provided more than 25% of the power produced in the U.S. last year. Even more remarkable is the fact that almost 34 gigawatts of solar generation was added in the U.S. in 2025. EIA went on saying that 2025 was a good year for renewable energy and 2026 promises to be even better. And so far 2026 is meeting those expectations especially with renewables and HVDC (high-voltage direct current) working together to open customer access to affordable power.
Grid-Enhancing Tech
The first six months of the year saw Hitachi Energy energize three VSC-based (voltage source converter) HVDC transmission projects in North America. Combined it added 5,450 megawatts of clean power to the grid. The first project was the New England Clean Energy Connect (NECEC) project. This interconnection replaced emission-intensive generation with clean renewable power. It was energized on Jan. 16, 2026, and is now operational. NECEC delivers 1,200 MW of hydroelectric power from Quebec, Canada to Lewiston, Maine. It’s made up of approximately 145-miles (233 km) of new 320 kV HVDC transmission line and includes upgrades to existing substations and transmission facilities. A spokesperson reports that NECEC is expected to provide approximately 20% of Massachusetts’ electricity. The interconnection is expected to save customers about US$ 3.38 billion over 20 years while eliminating an estimated 3.6 million metric tons of carbon dioxide.
The second scheme was the Champlain Hudson Power Express (CHPE) project. The CHPE completed testing early and became operational just after midnight on May 13, which allowed it to participate in NYISO’s July capacity market. CHPE is capable of providing up to 20% of the New York metro area’s electricity needs, while reducing carbon emissions by about 37 million metric tons through 2040. The 339-mile (546-km) transmission link is rated ±400 kV, 1,250 MW of clean, baseload, hydropower running from Montreal, Quebec directly to the Astoria Energy Complex in Queens, New York. CHPE takes advantage of VSC-based technology’s ability to utilize underground and underwater cabling as needed. This “preserves landscapes, safeguards ecosystems, and is non-disruptive to congested urban areas like NYC."
The third venture was Pattern Energy’s US$11 billion SunZia Project. It was commissioned and energized on June 19. SunZia actually has two components, the windfarm and the HVDC transmission link. SunZia Wind spans three New Mexico counties and is divided into two parts. The northern portion contains of 242 Vestas V163-4.5 turbines each rated 4.5 MW. The southern portion includes 674 GE Vernova 3.6-154 wind turbines each rated 3.6 MW. The windfarm has a total of 916 wind turbines with a combined generation capacity of 3,650 MW, making SunZia’s windfarm the largest onshore windfarm in the U.S. It’s also one of the largest onshore windfarms in the world, but it’s the HVDC transmission that’s pertinent to this discussion.
The SunZia Transmission link uses Hitachi Energy’s HVDC Light technology. In simple terms, it’s a VSC-based HVDC application utilizing modular multilevel converter architecture. This architecture has a high degree of reliability and scalability that can handle high power and voltage levels. It allows precise control of both active and reactive power, which enables superior integration of variable renewable generation. SunZia’s HVDC transmission is designed to transmit 3,000 megawatts of clean wind generated power. The converter is connected to a ±525 kV, bipolar 550-mile (885-km) HVDC transmission line that runs from New Mexico to Arizona supplying customers’ electricity needs across the western grid.
Moving Wind
This would be a good time to talk with an expert on VSC-based HVDC technology that’s having such a positive impact on these and other projects. We reached out to Magnus Callavik, global head of engineering for HVDC at Hitachi Energy to talk about the challenges being managed by VSC-based HVDC technologies on the power grid. Callavik began the discussion saying, “The global HVDC market has really taken off in recent years as grid modernization accelerates. HVDC Light offers higher-capacity over longer distances with precise control and that’s proving important to updating transmission systems. It’s really been good to see all the HVDC projects Hitachi Energy is involved with globally. They are improving the power grid by making it more flexible and adaptable at a time that it’s really needed. It has been an amazing spring this year as the transmission market advances. Having three projects like SunZia, CHPE, and NECEC in North America was exciting, and having them all commissioned within such a short time was challenging, but it was accomplished."
He continued, “They are all HVDC links, but each is quite different in their physical attributes, their permitting requirements, and the individual challenges each represented. In addition to the three North American projects there were other interesting spring projects taking place like the Kudus-Aarey connection in Mumbai, India. Mumbai is one of the world’s largest and most congested urban areas. The project called for a compact converter with a very small footprint. That’s ideal for HVDC Light along with the technology’s ability to use underground cabling where it’s no longer possible to build overhead lines. The project was commissioned in April 2026 and it’s delivering 1,000 MW of renewable energy now. These spring projects showcased HVDC Light’s flexibility and its ability to transmit large blocks of power efficiently, but they’re only a few of the applications we are doing.”
Callavik explained, “Hitachi Energy also has 13 projects in construction or tendering in the North Sea, which is one of the sweet spots for wind generation, but there’s more than new links. Hitachi Energy also rejuvenates older HVDC transmission links like the Intermountain Power Project carrying low-carbon power from Utah to California. This modernization project is upgrading the existing HVDC converter stations with state-of-the art technology to increase overall system’s reliability and efficiency. The project is in the installation and commissioning phase now, and it’s expected to be operational in 2028.”
Wrapping it up, Callavik said, “We have been building HVDC projects for over 72 years, and those installations are still in operation. And if it’s not the original installation, there have been upgrades and/or rebuilds keeping them function for long-term use. These links are all still operating, providing benefits to the power grid. This history gives utilities and grid operator confidence in the technology, which is important given the increasing numbers of onshore and offshore renewable projects in planning. Technologies like HVDC Light continues to evolve and advance and it’s compatible with what has preceded it. That’s why we can expect to see more challenging HVDC projects in the future.”
Making Electricity Affordable
Strategists have proposed adding interregional transmission interconnections as a way to bring down the cost of electricity. They argue that adding transmission lines between regions could save consumers billions every year in energy costs not to mention improving the resiliency of the power grid. It’s not a new concept. The European Union operates one of the most multifaceted interconnected systems in the world with more than 400 interconnectors. Multiple interconnections enhance grid reliability allowing areas to import and export power during emergencies like outages caused by extreme weather events such as those seen last summer.
VSC-based HVDC transmission is redefining interregional interconnections. They’re providing low-cost renewable generation to areas where costly fossil-based generation is the predominant resource. It’s estimated that expanding interregional transmission could save consumers several billions in energy costs each year by shifting lower cost generation into high-cost markets. That has the potential of increasing competitive pressure while lowering wholesale prices for commercial and industrial customers. This could get interesting in the years ahead!
About the Author
Gene Wolf
Technical Editor
Gene Wolf has been designing and building substations and other high technology facilities for over 32 years. He received his BSEE from Wichita State University. He received his MSEE from New Mexico State University. He is a registered professional engineer in the states of California and New Mexico. He started his career as a substation engineer for Kansas Gas and Electric, retired as the Principal Engineer of Stations for Public Service Company of New Mexico recently, and founded Lone Wolf Engineering, LLC an engineering consulting company.
Gene is widely recognized as a technical leader in the electric power industry. Gene is a fellow of the IEEE. He is the former Chairman of the IEEE PES T&D Committee. He has held the position of the Chairman of the HVDC & FACTS Subcommittee and membership in many T&D working groups. Gene is also active in renewable energy. He sponsored the formation of the “Integration of Renewable Energy into the Transmission & Distribution Grids” subcommittee and the “Intelligent Grid Transmission and Distribution” subcommittee within the Transmission and Distribution committee.
