Cost of Energy
The price of industrial electricity rose 17% in 2022, mirroring nationwide increases.
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 22nd of the 50 states in 2020) but the highest in New England.
The average industrial retail price of electricity in Maine rose 17% in 2022, from 9.55 to 11.17 cents per kilowatt hour. This was similar to the national increase of 18%. According to the U.S. Energy Information Administration, these price jumps were primarily caused by higher prices for natural gas used in power generation. Maine’s industrial electricity rates are still the lowest in New England, and 27% below the regional average, but they exceed the national average by 32%.
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
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Industrial Retail Electricity Price
U.S. Energy Information Administration