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Energy-Efficiency Funds and Demand Response Programs, Maine

Updated August 2007

What public-purpose-funded energy efficiency programs are available in my state?

The state's restructuring law provides roughly $12 million annually for energy efficiency programs through a statewide charge of up to 1.5 mills per kWh. The costs of these programs are included in the rates of the local electric distribution utilities.

The programs are administered by Efficiency Maine and overseen by the state's public utilities commission.

  • The Efficiency Maine Business Program offers both pre-established cash rebates (on high-efficiency lighting products, packaged air conditioners, NEMA Premium motors, and variable frequency drives) as well as customized incentives that are dependent on the energy efficiency work being done. No more than $200,000 of incentives can be received by a single customer over a two-year period.
  • Efficiency Maine also sponsors the Building Operator Training and Certification Program, which trains and certifies building operators to optimize the operations of their facilities.

What utility energy efficiency programs are available to me?

For information on Maine's electric utility energy efficiency programs, see the previous section. In addition, Northern Utilities offers its Energy Assesments program, in which large facilities (> 40,000 therms/yr.) receive a free walk-through audit followed by a 50% cost-shared (up to $7,500) scoping study to identify gas efficiency improvements. Installation of these retrofits are then cost-shared at 50%, up to $50,000 per master meter.

What load management/demand response options are available to me?

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Response Programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, or competitive energy supplier. ISO-NE offers several options:

  • The Real-Time Demand Response Program provides an opportunity for customers to receive payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions, based on the higher of the real time locational marginal price (LMP) or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). Participants may receive additional incentives by qualifying as an installed capacity (ICAP) resource for their load reduction capacity, although response to system emergencies then becomes mandatory. In order to facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-Based Communication System (IBCS) installed.
  • The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes' notice of a system emergency. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP Resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
  • The Real-Time Price Response Program provides customers with the opportunity to receive payments for voluntarily reducing load during periods when the real-time LMP is projected to be high. ISO-NE will notify participants either the night before or day of an event if the LMP is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
  • The Day-Ahead Option is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours but is remunerated by the greater of its bid or the actual clearing price for those hours.

In 2007, ISO-NE is embarking on a new initiative, the Forward Capacity Market, which will allow customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchible (such as a back-up generator)—into a forward capacity auction that will pit demand-side resources against supply-side ones. The first auction, for resources whose contribution to the grid must begin in June, 2010, will take place on February 1st, 2008, but "Show of Interest" forms for demand-side resources were due by the end of February, 2007 (future auction dates will be announced on the ISO-NE web site). However, in the "Transition Period," which is in effect until June 1, 2010, non-dispatchible demand resources (such as energy-efficiency, load management, or distributed generation) of at least 100 kW are eligible for fixed "installed capacity" payments from NE-ISO. The rate of remuneration is $3.05/kW-month until June of 2008, $3.75/kW-month in 2008-9, and $4.05/kW-month in 2009-10. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) website provides information on programs in Maine that offer incentives for renewable distributed generation. The following programs may of interest to federal customers:

  • The Renewable Resources Matching Fund (RRMF), created by the state's public benefits fund, supports demonstration projects using renewable energy technologies, including solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, fuel cells, municipal solid waste, and tidal energy. The RRMF is administered by the Maine Technology Institute (MTI). Grants are awarded as matching funding, with a maximum award of $50,000 or 50% of the project, whichever is less.
  • The Maine State Energy Program's Solar Program rebates 25% of the cost (or $1,250, whichever is less) of a solar hot water or space heating system.

Are there energy efficiency programs sponsored by the state government?

For information on state sponsored energy efficiency programs contact the MaineEnergyInfo.com.

What additional opportunities are available to me?

Federal customers have opportunities to pursue energy-efficiency projects with utilities (such as Central Maine Power, Maine Natural Gas, and Northern Utilities) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.