Maine moves to fast-track clean energy before federal tax credits expire

The current procurement has its roots in a bill the Maine Legislature passed in 2023, calling for the state to source renewable energy from installations sited on PFAS-contaminated land. A request for proposals was issued in August 2024, but none of the initial bids were deemed cost-effective, and none were selected. This year, the Legislature went back to the drawing board, tweaking details about how solar and storage projects can enter proposals.

The amended bill was enacted in June with an ​“emergency preamble,” allowing it to become law immediately, rather than waiting the typical 90 days after the legislative session adjourns. That move required the approval of at least two-thirds of lawmakers in both the state Senate and House, which is an encouraging sign of support for renewables across political divides, said Dan Burgess, director of the Maine Governor’s Energy Office.

“It’s really exciting that a bipartisan coalition of legislators sees this as an opportunity to bring on low-cost clean energy in Maine,” he said.

Previous renewable energy procurements in 2020 and 2021 chose 24 wind and solar developments to buy power from. Many of these projects, however, fell apart when the COVID-19 pandemic disrupted global supply chains and drove up inflation, Burgess said. This latest solicitation is a great opportunity to make up some of that lost ground, he said.

Maine was an assertive early adopter of the ​“renewable portfolio standard,” a state-level regulation that requires utilities to obtain a certain percentage of their power supply from renewable resources. When Maine adopted the policy in 1999, it required 30% of the electricity sold to be renewable (a number it hit immediately because of the high concentration of hydropower in the state). The total requirement increases over the years; the state is now aiming for 90% renewables by 2040 with the final 10% coming from non-emitting but not necessarily renewable sources, like nuclear.

Today, about 32% of Maine’s electricity comes from gas-fired power plants, and another 31% from hydropower. Solar and wind together contribute roughly one-quarter of the supply.

Studies suggest that Maine’s commitment to renewable energy has already saved residents significant sums and stands to create even more financial benefits. A 2024 report on the impact of the renewable portfolio standard found that utility customers saved a total of about $21.5 million each year from 2011 to 2022. An analysis released in January concluded that reaching 100% clean energy by 2040 would save the average Maine household around $1,300 per year.

The current procurement is to be the last under the existing regulatory structure, in which the state Public Utilities Commission is the body that runs such solicitations. Legislation signed this month will create a cabinet-level energy department — currently Maine has only an energy office — with the authority to run regular procurements as needed to advance the state’s renewable energy goals.

“Instead of doing these one-off procurements specifically directed by the Legislature, we’re now getting to have that predictability,” Donoghue said.