Cost of Energy
The price of industrial electricity rose 13% in 2023, in contrast to a decline nationwide.
Unfavorable movement since the last available data
Benchmark: The cost of electricity in Maine will decline to the U.S. average by 2030.
Overview
Electricity is a significant cost for many businesses, especially those in energy-intensive industries such as manufacturing. The energy intensity of Maine’s economy is about average for the U.S. (ranking 23rd of the 50 states in 2021) but the highest in New England.
The average industrial retail price of electricity in Maine rose 13% in 2023, from 11.03 to 12.43 cents per kilowatt hour. This contrasted with a national decrease of 3%. Maine’s price jump was caused by high prices and seasonal supply variations for the natural gas used in power generation, as well as the recovery of costs associated with weather effects to grid infrastructure. Maine and New England are more reliant on natural gas for energy production than the rest of the U.S. Maine’s industrial electricity rates are still the second lowest in New England and 21% below the regional average, but they exceed the national average by 54%.
New renewable energy sources could help reduce costs and lower emissions, but they require increased investment in Maine’s strained transmission system. A coordinated transmission anticipation process could help address this issue.
Fig. A
On mobile? Viewing this data is easier at a computer.
Industrial Retail Electricity Price
Source: U.S. Energy Information Administration