by AnnMarie Hilton, Maine Morning Star
Amid federal efforts to scale-back clean energy incentives, utility regulators in Maine approved five new renewable energy projects.
On Sept. 16, the Maine Public Utilities Commission approved a four-megawatt hydroelectric facility and four solar projects totaling more than 250 megawatts through a procurement process that prioritized the reuse of contaminated land for economic development.
In July, the commission asked for proposals to develop energy projects that used eligible renewable resources, which could include solar, wind, hydroelectric and biomass. Priority was given to projects that would be placed on agricultural land contaminated with per-and polyfluoroalkyl substances, otherwise known as PFAS or forever chemicals.
Although that approach is intended to help communities turn environmental challenges into economic opportunities, Commission Chair Philip Bartlett said it was difficult to assess the benefits of these projects because of the current market and federal policy changes.
The Inflation Reduction Act offered developers a 30% tax credit into the 2030s for investments in energy projects that don’t produce carbon emissions. However, President Donald Trump signed a policy measure on July 4 that ended those credits. Projects must now start construction by July 4, 2026, to qualify for the credits, or be operational by the end of 2027.
Some states, including Maine, have tried to fast-track clean energy projects in light of that change, but these particular projects were the result of legislation Gov. Janet Mills signed into law in June 2025 that called for expedited procurements for cost-effective renewable energy projects.
“Assessing benefits based on assumptions and forecasts is particularly challenging at this moment,” Bartlett said. “We’ve seen significant changes in federal policy that will make renewable projects more expensive going forward, and there is increasing uncertainty and potential volatility in our [renewable energy credit], energy, and capacity markets.”
Bartlett added that all three commissioners agreed the new projects have “a reasonably strong chance of achieving benefits and will also provide a hedge against market volatility in the years ahead.”
The leader of the Governor’s Energy Office, which is expected to transition to the cabinet-level Maine Department of Energy Resources this fall, expressed support for the projects selected. .
“This procurement, expedited by bipartisan legislation, will result in new clean energy generation for Maine that should be able to take advantage of expiring federal tax credits and deliver affordable energy to ratepayers,” Director Dan Burgess said.
In the future, the new Department of Energy Resources will conduct competition procurements for clean energy projects that are approved by the Public Utilities Commission. Mills also signed LD 1868 into law earlier this year to codify the state’s goal of using 100% clean energy by 2040.
More details about the projects, including the name of the bidder, will be announced in the coming weeks after contracts are finalized, the commission said.
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