Maine utility regulators have voted to award a long-term contract to a biomass-fueled power plant proposed for development in northern Maine.
In 2022, the Maine legislature enacted a law directing the Public Utilities Commission to establish a wood-fired combined heat and power program. The law creates an opportunity for qualifying projects to compete for long-term contracts to sell electricity or renewable energy certificates to Maine's investor-owned transmission and distribution utilities. In 2023, the PUC solicited proposals, but the PUC ultimately found that none of the proposals submitted were eligible for contracting under the 2022 law.
In 2023, the legislature amended the procurement law to broaden program eligibility including with respect to size, net generating capacity, and location. The PUC issued a revised request for proposals under the amended law.
Now, the PUC has selected a proposal by Ashland CHP LLC to sell the electricity generated by a new biomass-fueled facility to the local utility. According to the PUC, the facility would include about 17.75 megawatts of biomass power, with 15 megawatts of electricity offered into the program, and the remaining power used for heating.
In deliberations, Maine PUC commissioners encouraged the purchasing utility to "secure offtake for the project" and to "maximize the value of the energy from this project". Maine restructured its investor-owned utilities 25 years ago, to separate wires-owning utilities from deregulated generation and competitive retail supply. The restructured utility environment means that the utility has no natural need for power, so the utility typically resells its entitlements under power purchase agreements to other buyers.
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