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Economic Development Economic Development
1-1-2020
Maine Energy Overview Maine Energy Overview
Mariya Pominova
University of Maine - Main
Jonathan Rubin
University of Maine
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Pominova, Mariya and Rubin, Jonathan, "Maine Energy Overview" (2020).
Economic Development
. 15.
https://digitalcommons.library.umaine.edu/mcspc_ecodev_articles/15
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1
Maine Energy Overview
Mariya Pominova and Jonathan Rubin
School of Economics Staff Paper: 636
University of Maine
January 2020
Energy Sources
The U.S. Energy Information Administration (EIA) defines primary energy as energy that can be
accounted for in a statistical energy balance without undergoing any transformation. There are two groups
of primary energy sources: renewable and non-renewable (Table 1).
Table 1 - Main Primary Non-Renewable and Renewable Energy Sources (U.S. Energy Information
Administration, 2018)
Non-Renewable Energy Sources
Renewable Energy Sources
Oil and Petroleum Products
Hydrocarbon gas liquids
Natural Gas
Coal
Nuclear Energy
Solar Energy
Geothermal Energy
Wind Energy
Biomass
Hydropower
Renewable energy sources, such as hydropower and wind energy, are non-depletable whereas non-
renewable energy sources, such as coal or natural gas, have a finite amount (U.S. Energy Information
Administration, 2018).
There are four major end-use energy consuming sectors: industrial, transportation, residential, and
commercial. Electricity is a secondary energy source and can be produced through burning fossil fuels,
nuclear reactors as well as from renewables.
Maine Energy:
Maine is the northernmost state in New England and highly rural. Furthermore, Maine’s economy is
highly dependent on forestry and wood-products, such as production of biofuel, tying in the industrial
sector as well (EIA 3/15/2020).
Table 2 - Maine Energy Snapshot (2016). Source: EIA Maine Energy Overview
Description
Maine
US
Resident population
1
1.33 million
0.4% (Share US)
Real GDP
2
$55.6 billion
44 (Rank US)
Total Energy Consumption
3
392 trillion BTUs
44 (Rank US)
→Per Capita
294 million BTUs
27 (Rank US)
→Per dollar real GDP
7.05 thousand BTUs
1
Including armed forces; Source: Bureau of Labor Statistics (2016)
2
Inflation adjust with 2009 as base year; Source: Bureau of Economic Analysis (2016)
3
Source: Energy Information Administration (2016)
2
Total Energy Production
153 trillion BTUs
0.2% (Share US)
Total energy expenditures
$5,624 million
40 (Rank US)
Per capita
$4,213
11 (Rank US)
Total energy average price
$18.15 per million BTUs
EIA Quick Facts:
• Maine’s households have the highest dependence on oil in the US, with approximately two-
thirds of households reliant on fuel oil as the primary energy source for home heating.
• In 2018, 75% of Maine’s net electricity generation was obtained from renewable sources: 31%
from hydroelectricity, 22% from biomass, and 21% from wind.
• In 2017, about 49% of all Maine’s end-use energy consumption came from petroleum product
sources.
• The share of Maine’s gross domestic product (GDP) from forestry and paper product
manufacturing has shrunk considerably in the last decade. Today, Maine’s economy is
dominated by service industries such as finance, insurance, and real estate.
• Maine is a New England leader and sixth in the nation for share of wind-powered electricity
generation.
Source: EIA Maine Energy Overview, (https://www.eia.gov/state/?sid=ME,) June 20, 2019)
Energy Production in Maine
The EIA defines primary energy production as the transformation of energy from fossil fuels, and
renewable and nuclear sources
4
. Primary energy production in Maine is 100% renewable, i.e., Maine does
not produce oil, gas, coal or nuclear energy. Maine is a leader in New England in renewable energy
production (Figure 1).
Figure 1: Maine Energy Production by Source (Source: EIA State Energy Data System (SEDS):2017)
The majority of primary energy production in Maine is from hydroelectricity and wood and wood
products, but recently electricity production from primary energy resources wind and solar has begun to
4
This includes harnessing energy from sources such as the sun, wind, and water for the generation of electricity
but does not include the use of already harvested energy, such as coal, for electricity production.
3
increase. Maine is a New England leader and sixth in the nation for share of wind-powered electricity
generation (EIA Maine Energy Overview 2019).
Maine has significantly decreased use of fossil fuels for the production of electricity in the last two
decades, with 75% of all electricity production coming from renewable sources (Figure 2).
Figure 2: Maine Net Electrical Generation by Energy Source (Source: EIA State Energy Data System
(SEDS):2017)
Energy Consumption in Maine:
On a per-capita basis, Maine consumes the most energy per person in New England (Figure 3).
Figure 3: New England Total Energy Consumption by State (Source: EIA SEDS: 2017)
4
The majority of energy consumption in Maine is non-renewable, with three of the four energy
consumption sectors using a majority of non-renewable energy (Figure 4).
Figure 4: Maine Total Energy Consumption by Source and Sector (Source: EIA SEDS 2017)
Energy consumption in Maine has been steadily decreasing for the last two decades (Figure 5). In this
time, there has been a shift in the proportions of total energy consumption held by each sector. In 2000,
46% of all energy consumption was in the industrial sector. In 2017, this number dropped to 26%. The
transportation sector, on the other hand, increased by 7 percentage points. The industrial and
transportation sectors make up over 50% of the end-use energy consumption in Maine.
Figure 5: Maine Total Energy Consumption over time (Source: EIA SEDS 2000-2017)
Energy Prices and Expenditure in Maine
The lowest priced energy source in Maine is wood and biomass waste. The next cheapest is natural gas.
Coal is an inexpensive input but only makes up 1% of energy consumption in Maine (Table 3).
5
Table 3: Maine average energy price by source in 2017 (Source: EIA SEDS 2017)
Energy Source
Consumption (%)
Price ($USD/ Million BTU)
Non-Renewable
Coal
1%
$4.29
natural gas
12%
$6.42
all petroleum products
49%
$17.19
Renewable
wood and biomass waste
25%
$2.91
Secondary
electricity sales
10%
$37.51
Total Energy
$16.71
Energy Expenditure in Maine
Since 2000, Maine energy expenditure increased by over 50% (Figure 6). The transportation sector has
seen the most growth in this time and accounts for the greatest proportion of expenditure in the state
(Figure 7).
Figure 6: Change in Maine Total Energy Expenditure by End-Use Sector Over Time (Source: EIA SEDS
2000-2017)
Maine’s greatest expenditure is in petroleum products, for transportation and heating, and electricity, with
nearly half of the Residential sector and 100% of the transportation sector expenditure used on petroleum
products. Maine is the most petroleum-dependent state for home heating and has the highest per-capita
petroleum consumption in New England, with approximately two-thirds of households reliant on fuel oil
as the primary energy source for home heating. Only 10% of Maine households use electricity for home
heating, despite the state having the lowest electricity prices in the New England region. (EIA Maine
Energy Overview, 2019).
6
Figure 7: Maine Total Energy Expenditure by Source in 2017 USD (Source: EIA SEDS 2017)
Given its high per-capital energy use, Maine also has the highest energy expenditure per capita in New
England (Figure 8).
Figure 8: New England Total Energy Expenditure Per Capita in 2017
Maine’s high per-capita expenditure can be largely explained by high energy consumption relative to the
population size (Figure 8). Much of these high costs can be explained through comparable proportions to
consumption (Figure 9).
7
Figure 9: New England Per-Capita Total Expenditure per Sector in 2017 USD (Source: EIA SEDS 2017)
Figure 9 shows the energy expenditure per-person in each state by sector. Transportation accounts for
44% of Maine’s per capita expenditure, over 5% greater than the other states. This, again, is largely
explained by the size of the state and its rural nature.
Conclusion:
The state of Maine is a regional leader in renewable energy production and highly ranked nationally in
proportion of renewable energy consumed. Maine is 3
rd
in the nation for highest percentage of renewable
energy consumption as a share of state total (Maine State Energy Profile 2019). However, 61% of all
primary energy consumed in Maine in 2017 was from non-renewable sources, about half of which were
petroleum products (Table 3). Because Maine does not have oil and natural gas reserves, it is reliant on oil
and natural gas imports. This causes Maine to be subject to the volatility of national and world oil and
natural gas prices. Striving towards developing the state’s renewable energy resources, such as offshore
wind and solar, may help alleviate some of that volatility and drive down expenditure costs.
8
Work Cited
U.S. Energy Information Administration. (2018, May 29). Use of Energy in the United States - Energy
Explained, Your Guide To Understanding Energy - Energy Information Administration.
Retrieved March 9, 2019, from
https://www.eia.gov/energyexplained/index.php?page=us_energy_use
U.S. Energy Information Administration (EIA). (2018, June 21). Maine - State Energy Profile. Retrieved
April 14, 2019, from https://www.eia.gov/state/?sid=ME
U.S. Energy Information Administration. (2019b, March 31). What Drives Crude Oil Prices? An analysis
of 7 factors that influence oil markets. Retrieved May 6, 2019, from EIA website:
https://www.eia.gov/finance/markets/crudeoil/spot_prices.php
9
Appendix A – Consumption in New England by state, sector, and source (2017) – Billion BTUs.
Sector and Source
CT
MA
ME
NH
RI
VT
Commercial sector
natural gas
54,014
112,741
9,247
9,356
11,684
6,391
coal
-
-
-
-
-
-
all petroleum products
14,828
19,235
17,585
11,732
3,493
6,173
wood and biomass waste
1,029
2,531
5,000
2,671
247
2,428
electricity sales
42,088
88,603
13,364
14,978
12,294
6,744
geothermal energy
-
807
-
-
-
-
hydroelectric power
-
36
-
-
-
-
solar thermal and photovoltaic energy
1,445
8,342
131
237
247
366
wind
-
193
-
-
66
-
total energy
188,139
401,606
65,554
70,080
44,591
24,642
Industrial sector
natural gas
25,259
48,408
18,337
9,790
8,812
2,257
coal
-
103
465
-
-
-
all petroleum products
18,843
30,104
10,058
11,469
8,279
9,247
wood and biomass waste
4,262
7,456
48,694
4,016
134
396
electricity sales
11,067
23,404
9,070
6,674
2,476
4,857
hydroelectric power
-
54
3,353
-
-
-
solar thermal and photovoltaic energy
194
649
-
50
-
16
wind
-
15
-
-
-
-
total energy
79,275
154,862
103,705
45,858
23,037
18,603
Residential sector
natural gas
49,815
124,802
2,847
7,556
18,983
3,614
all petroleum products
54,102
79,033
39,324
33,770
11,568
17,040
electricity sales
42,239
65,981
15,827
15,154
10,332
6,904
geothermal energy
21
52
72
29
57
29
solar thermal and photovoltaic energy
3,087
5,343
395
588
302
737
wood
5656
8386
17138
11275
1356
12400
total energy
229,922
409,530
99,557
99,843
56,517
43,325
Transportation sector
natural gas
5,591
8,939
706
309
3,040
13
all petroleum products
221,786
445,760
122,481
101,404
56,466
48,210
electricity sales
604
1,188
-
-
94
-
total energy
229,054
458,156
123,187
101,713
59,726
48,223
Electric power sector
natural gas
111,655
167,889
13,989
26,738
52,231
13
coal
2,507
12,304
1,704
3,617
-
-
all petroleum products
1,626
2,877
1,703
866
453
87
wood and biomass waste
13,061
19,982
28,524
23,591
1,950
6,152
total energy
306,755
274,914
110,331
176,590
56,761
57,038
hydroelectric power
3,060
9,468
27,867
13,022
22
11,796
solar thermal and photovoltaic energy
360
7,197
50
-
130
910
wind
117
1,936
21,493
3,792
1,306
2,814
nuclear electric power
172,570
52,788
-
104,493
-
-
Total of all sectors
natural gas
246,334
462,781
45,127
53,748
94,751
12,288
coal
2,507
12,407
2,168
3,617
-
-
all petroleum products
311,185
577,010
191,151
159,241
80,259
80,757
biomass
36,917
62,219
104,855
47,645
6,899
23,864
wood and biomass waste
24,008
38,355
99,357
41,553
3,687
21,376
electricity sales
95,998
179,175
38,261
36,806
25,196
18,506
geothermal energy
21
859
72
29
57
29
hydroelectric power
3,060
9,558
31,221
13,022
22
11,796
solar thermal and photovoltaic energy
5,086
21,532
577
875
679
2,029
wind
117
2,143
21,493
3,792
1,372
2,814
total energy
726,389
1,424,156
392,002
317,495
183,872
134,794
10
Appendix B – New England Expenditure by State, Sector, and Source (2017) – Million Dollars
Sector and Source
CT
MA
ME
NH
RI
VT
Commercial sector
natural gas
488
1,112
101
106
128
44
all petroleum products
251
319
284
178
59
101
wood and biomass waste
4
7
13
8
1
9
electricity sales
1,981
4,138
475
650
548
289
total energy
2,725
5,576
873
943
736
443
Industrial sector
natural gas
159
377
144
86
73
11
coal
-
1
2
-
-
-
all petroleum products
294
512
146
173
119
129
wood and biomass waste
2
4
112
2
0
1
electricity sales
425
952
245
241
106
145
total energy
880
1,846
649
503
298
286
Residential sector
natural gas
676
1,614
40
107
258
50
all petroleum products
1,112
1,566
765
709
235
404
electricity sales
2,512
3,879
741
853
555
358
total energy
4,322
7,092
1,613
1,713
1,053
860
wood
22
33
67
44
5
48
Transportation sector
natural gas
0
6
-
2
1
-
all petroleum products
4,590
8,665
2,491
2,032
1,137
1,000
electricity sales
19
22
-
-
5
-
total energy
4,610
8,693
2,491
2,034
1,143
1,000
Electric power sector
natural gas
395
623
53
114
194
-
coal
11
53
7
16
-
-
all petroleum products
19
30
18
11
6
1
wood and biomass waste
29
44
63
92
4
14
nuclear electric power
123
40
-
75
-
-
Total of all sectors
natural gas
1,718
3,732
338
415
654
104
coal
11
54
10
16
-
-
all petroleum products
6,265
11,092
3,703
3,105
1,557
1,636
wood and biomass waste
57
87
255
147
11
72
electricity sales
4,938
8,991
1,460
1,744
1,213
792
total energy
12,536
23,206
5,624
5,193
3,229
2,589
11
Appendix C - Energy Prices in New England by State, Source, and Sector (2017) - Dollars per million BTU
Sector and Source
CT
MA
ME
NH
RI
VT
Commercial sector
all petroleum products
14.62
14.83
13.62
12.88
14.42
13.83
coal
0
0
0
0
0
0
natural gas
8.55
9.2
10.32
11.03
10.83
6.47
electricity sales
46.16
45.72
35.42
42.3
43.6
42.62
wood and biomass waste
5.73
3.17
3.37
4.26
5.73
5.41
total energy
23.97
24.55
19.06
23.61
26.16
20.02
Industrial sector
all petroleum products
14.7
15.85
13.06
15.22
12.96
13.23
coal
0
5.24
5.21
0
0
0
natural gas
5.91
7.18
7.46
8.34
8.44
5.08
electricity sales
37.55
39.2
26.26
36.16
39.52
29.97
wood and biomass waste
3.24
2.29
2.96
1.13
1.59
2.72
total energy
15.36
17.45
8.38
17.17
14.45
17.27
Residential sector
all petroleum products
17.95
17.91
17.17
19.66
18.18
20.96
coal
0
0
0
0
0
0
natural gas
12.56
12.09
13.42
13.83
13.39
13.82
electricity sales
58.65
55.69
46.38
53.87
54.56
50.9
total energy
27.98
24.84
22.04
26.24
25.14
23.02
Transportation sector
all petroleum products
18.43
17.17
18.07
17.92
18.01
18.43
coal
0
0
0
0
0
0
natural gas
12.19
14.17
10.32
13.4
13.08
6.47
electricity sales
31.78
17.41
0
0
54.85
0
total energy
18.47
17.17
18.07
17.91
18.07
18.43
Electric power sector, fuel consumption
all petroleum products
8.53
6.5
7.73
8.99
9.76
9.76
coal
4.07
4.07
4.07
4.07
0
0
natural gas
3.58
3.2
3.22
4.07
3.39
2.97
wood and biomass waste
2.32
2.32
2.32
3.98
2.32
2.32
Electric power sector, net generation
nuclear electric power
0.71
0.67
0
0.71
0
0
Total of all sectors
all petroleum products
17.91
17.06
17.19
17.68
17.34
17.98
coal
4.07
4.08
4.29
4.07
0
0
natural gas
6.54
7.52
6.42
6.9
6.94
8.38
electricity sales
50.54
48.3
37.51
45.88
47.71
42.39
wood and biomass waste
2.99
2.98
3.11
4.11
3.39
4.23
total energy
21.89
20.65
16.71
21.03
21.17
19.87
