Cost of Energy

-3¢

The price of industrial electricity fell 0.3¢/kWh in 2020 but still exceeds to U.S. and New England averages. High electricity prices are a hindrance for some Maine industries.

Favorable movement since the last available data

Benchmark: The cost of electricity in Maine will decline to the U.S. average by 2030.

Overview Fig. A

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 2019) but the highest in New England.

The average industrial retail price of electricity in Maine decreased for a second year in a row, falling from 9.22 to 8.92 cents per kilowatt hour from 2019 to 2020, while the average New England price declined from 13.07 to 12.26 cents and the U.S. average fell from 6.81 to 6.66 cents. Industrial electricity in Maine now costs 37% less than the New England average and about 34% more than the national average.

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, 2010-2020

U.S. Energy Information Administration