The Plan outlines a path forward to stabilize costs, increase energy independence, and ensure more reliable and resilient energy systems for Maine
January 17, 2025
Augusta, MAINE – As required by law, the Governor’s Energy Office (GEO) today submitted to the Legislature the Maine Energy Plan, a strategic plan for the state to advance affordable, reliable and clean energy for Maine’s people and economy.
The Energy Plan highlights the significant progress Maine has made toward achieving its energy goals to date, including investing in energy efficient technologies that are saving Maine people money and expanding homegrown clean energy to boost the state’s energy independence.
The Plan outlines strategies to further reduce energy costs, ensure reliability and resilience, and increase the diversity of energy resources to meet the Governor’s goal of 100 percent clean electricity by 2040, which will reduce energy costs and volatility over time. The Plan was informed by an 18-month stakeholder engagement process and an expert technical report.
Maine’s dependence on fossil fuels has long been a bipartisan issue. During the LePage Administration in 2011, lawmakers enacted into state law bipartisan goals to reduce Maine’s dependence on heating oil. In 1997, during the King Administration, lawmakers enacted the state’s Renewable Portfolio Standard and have since updated it on a bipartisan basis during the Mills Administration.
"For too long, Maine has been heavily reliant on imported fossil fuels to heat our homes, run our businesses, and power our economy,” said Dan Burgess, Director of the Maine Governor’s Energy Office. “This over-reliance has made our state vulnerable to steep price increases driven by global markets, as we’ve experienced in recent years. The Maine Energy Plan offers key strategies and actions necessary for the state to become more energy independent, helping to stabilize energy prices for Maine people over the long run while increasing energy reliability and resilience, creating good-paying jobs, and keeping more energy dollars here in Maine."
The Plan is supported by a detailed technical report – the first of its kind for Maine – which demonstrates 100 percent clean energy is achievable, beneficial, and results in lower overall energy costs across the economy. The report also found that while Maine’s electricity demand is expected to more than double between now and 2050 as heating and transportation are electrified, total energy use will decrease as Maine shifts away from traditional combustion technologies and toward high efficiency electric technologies such as heat pumps and electric vehicles. Greater use of electricity across the economy also results in lower electricity prices over time as costs are spread out over a greater number of customers and uses.
The Maine Energy Plan offers five objectives and associated strategies and actions to advance Maine’s energy system and meet the state’s climate and clean energy requirements. The five objectives are:
- Deliver affordable energy for Maine people and businesses
- Ensure Maine’s energy systems are reliable and resilient in the face of growing challenges
- Responsibly advance clean energy
- Deploy efficient technologies to reduce energy costs
- Expand clean energy career opportunities for Maine people and advance innovation
In February 2023, recognizing the key role clean energy resources already play in advancing Maine toward a cleaner, more affordable and resilient energy future, Governor Mills set a goal of 100 percent of Maine’s electricity sourced from clean resources by the year 2040. The Maine Energy Plan offers a pathway to reach that goal consistent with the objectives of Maine Won’t Wait, the Maine Infrastructure Rebuilding and Resilience Commission Interim Report, and Maine’s 10-Year Economic Development Plan. The Plan outlines key actions to be led by GEO in collaboration with other state agencies, community organizations, and private sector partners.
"Maine has achieved nation-leading successes in reducing emissions while growing our economy with clean energy jobs," said Hannah Pingree, Director of the Governor's Office of Policy Innovation and the Future and co-chair of the Maine Climate Council. "The Maine Energy Plan provides a roadmap for leveraging that progress over the next two years to lower energy bills, support businesses, and curb the effects of climate change as we work towards the Governor’s goal of 100 percent clean electricity by 2040.”
"It's critical that Maine businesses and consumers have access to affordable, reliable energy to support economic growth,” said Heather Johnson, Commissioner of the Maine Department of Economic and Community Development. “The Maine Energy Plan outlines strategies for Maine to have more stable and predictable energy costs by reducing our state’s reliance on volatile fossil fuels.”
"This plan offers actionable strategies to meet the state’s targets while keeping both reliability and costs front of mind," said Senator Mark Lawrence and Representative Melanie Sachs, co-chairs of the Maine Legislature's Energy, Utilities and Technology Committee. " We look forward to diving into the details of the technical report which underpins this plan as the Energy Committee considers proposals to stabilize electricity rates, reduce emissions and grow clean jobs in Maine this session.”
The Energy Plan highlights the state’s long-standing heavy reliance on imported fossil fuels to heat homes and power the New England electrical grid. This reliance has led to historic price volatility in recent years, with heating oil and natural gas prices jumping to unprecedented levels in 2022 and 2023. While Maine has made significant progress to reduce heating oil dependence, it remains the most heating oil dependent state in the country, making it vulnerable to shifting global oil markets and burdening households with high energy costs.
At the same time, Maine continues to be susceptible to frequent and long duration power outages caused by severe storms, floods, and natural disasters exacerbated by climate change. The Plan offers strategies to build a more resilient and reliable electrical grid by leveraging innovative technologies, prioritizing renewable energy sources, and coordinating with local emergency management, transmission and utility operators, and state agencies.
As required by law, GEO will update the Maine Energy Plan every two years.
Last week, Governor Mills announced that she has proposed elevating GEO to a cabinet-level department as part of her latest biennial budget proposal. Establishing the Maine Department of Energy Resources outside of the Governor's Office, where GEO currently resides, would allow for a more integrated, comprehensive, and consistent approach to the planning and management of Maine's energy system, helping Maine more effectively prioritize affordable and reliable energy for all Maine people and businesses. It is a budget neutral initiative during a tight budget cycle. If the Governor's budget proposal is passed by the Maine Legislature, GEO would transition to a department by the end of this year.
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