Energy Storage Landscape in Maine Faces Debate Over Utility Ownership

The increasing investment in battery storage to manage solar and wind power fluctuations has prompted a debate over utility ownership in Maine, with regulators now reviewing requests from major utilities. Central Maine Power (CMP) and Versant Power seek permission from the Public Utilities Commission (PUC) to own battery storage, challenging the status quo established over 25 years ago when utilities were deregulated by the Legislature.

CMP and Versant argue that utility ownership would enhance reliability, grid resiliency, and support state policy goals, citing lower project costs due to their scale. Critics, however, including Competitive Energy Services, emphasize the importance of a competitive energy storage market for Maine ratepayers, urging the PUC to reject the utilities’ requests.

The PUC is addressing this issue following legislation enacted in 2021, which directs the solicitation of public opinions on whether investor-owned utilities should own or have a financial interest in energy storage and, if so, under what conditions and costs.

Maine’s clean energy goals include achieving 300 megawatts of power capacity through energy storage by the end of 2025 and 400 MW, constituting 20% of the state’s peak electricity demand in 2030.

Developers are increasingly seeking to connect battery storage to New England’s grid, with projects making up about 35% of proposed generating capacity as of February 2023. Critics argue that utilities view energy storage as a revenue source, potentially burdening ratepayers.

The debate involves concerns about potential manipulation of costs and anti-competitive practices if utilities are allowed to own battery storage. Environmental groups, such as the Sierra Club and the Natural Resources Council of Maine, express apprehension about ratepayer expenses and the potential for utilities to charge for capital expenses and system upgrades.

Not all environmental groups reject utility ownership, with the Conservation Law Foundation suggesting a carefully designed approach that doesn’t undermine competition in the energy storage market.

The dispute revolves around the interpretation of electricity generation, with CMP contending that energy storage does not “generate” energy but stores it efficiently. Critics argue that energy storage is a form of energy generation when supplying additional grid power.

As the PUC evaluates the requests, stakeholders emphasize the need for a balanced approach that ensures fair competition, compliance with restructuring laws, and meets renewable energy goals for the state.

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