Maine Selects 546 Megawatts of Projects for Long-Term Renewable Energy Contracts

The Maine Public Utilities Commission on Sept. 23 approved 17 renewable energy projects totaling 546 megawatts to enter into long-term contracts with the state’s investor-owned utilities. The projects represent solar, wind, hydro-electric, and biomass resources, with solar accounting for 482.5 megawatts of the capacity. The selection, which marks the largest renewable energy procurement in Maine, follows a 2019 law that strengthened the state’s renewable portfolio standard to 100 percent by 2050. The law directed the commission to conduct two competitive solicitations for an amount of energy equal to 14 percent of the state’s 2018 retail sales. 

Of the 14 percent, the law requires 7 to 10 percent through contracts approved by the end of 2020 and the remainder through a solicitation process to be initiated by Jan. 15, 2021. The projects are required to qualify for Maine’s Class 1A Renewable Portfolio Standards. Selected projects will enter into 20-year contracts with one or both of Maine’s investor-owned transmission and distribution utilities – Central Maine Power Company and Emera Maine. 

Democratic Governor Janet Mills applauded the selection, calling it a “historic step forward in Maine’s effort to embrace renewable energy, create good paying green-collar jobs, diversify and expand our economy, and combat the threat of climate change.” 

The first-year energy prices from the new facilities receiving awards range from 2.9-4.2 cents per kilowatt-hour, according to the commission. The projects were evaluated based on expected value they will provide to consumers and the state’s economy. Among the benefits, initial capital spending with Maine-based entities is estimated at more than $145 million. Over the 20-year contract term, purchases of goods and services are expected to average over $3 million annually, while taxes and payments to host communities are estimated at $4.7 million per year. Payments to contractors for wood fuel harvest is anticipated to range from $11-12 million annually over the contract term. Further, the projects are expected to reduce emissions by  500,000 tons per year. 

Final contracts are subject to commission approval. Projects will be reviewed annually and contract prices may be adjusted downward if they do not meet the committed economic benefits.