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Updated: April 14, 2025

Future of Maine’s renewable energy projects uncertain, says E2Tech panel

By Laurie Schreiber

Changes in federal policies are disrupting renewable energy projects in Maine that were either midstream or on the drawing board.

“I think it’s going to affect development. I don’t think it’s going to put it to a standstill. I think it’s going to be something that requires us to adjust,” said Adam Cote, an attorney at Drummond Woodsum.

Cote was part of a panel, hosted last week by E2Tech, on the effect of federal policy changes on Maine's energy and environmental community.

“Changes in the executive and legislative branch in Washington, D.C., has led to many changes in funding and federal policy, which in turn is influencing the environmental and energy community in Maine: the businesses, nonprofits, public agencies and other institutions, as well as their employees and the people we serve,” said E2Tech.

Cote noted the renewable market in Maine was boosted by infusions of funding through the federal Inflation Reduction Act of 2022 which, among its provisions, invested in clean energy while promoting domestic energy production, despite supply chain constraints and other development changes resulting during and after the pandemic. 

But recent federal policy stances and funding freezes are resulting in new uncertainties, he said.

Cote said he’s advising clients in the renewable energy space to reassess their risk.

“When you look at contracts and agreements, when you’re talking with your funders, your banks and capital markets, expect there’s going to be an enhanced discussion of risk,” said Cote. “I think that’s what we’ll see on future projects. Not a stop to what we’re doing. A reassessment and a more planned approach to it.”

Evolving situation

“It’s an evolving situation,” said Matthew Gamache, COO at Competitive Energy Services, which provides energy management and consulting services to private and public clients. 

Gamache said uncertainties are manifesting among clients pursuing renewable and greenhouse gas projects, with clean energy transitions facing higher costs today than they did a year or two ago, partially as a side effect of the threat of tariffs, given how much those projects rely on foreign imports. 

Uncertainty has caused clients to reconsider the timing of their investments in the renewables space, he said. 

Some projects that are already in some stage of development could be more likely to succeed than those still on the drawing board, he added.

But overall, he said, the uncertain landscape “threatens our regional progress in decarbonizing our energy grid.”

Maine’s climate plan sets goals that include using renewable sources for 80% of the state's energy by 2030, and 100% for 2050. Those levels were estimated to cut greenhouse gas emissions 45% by 2030 and achieving carbon neutrality by 2045.

“It’s going to happen, but this administration ha shown it might not happen on the same timeline,” said Gamache.

Gamache cited a recent federal order temporarily halting offshore wind leasing on the outer Continental Shelf.

Offshore wind is cited by the Governor’s Energy Office as a critical piece for achieving  climate goals.

“That whole area is in jeopardy,” Sean Murphy, a senior project manager at Flycatcher LLC, a natural resources consultant in Yarmouth, said of offshore wind development.

Murphy said alternative energy research and innovation in general is stagnant in the current funding environment.

“Often the federal government is the engine that keeps innovation going,” Murphy said.

He continued, “I think anybody who’s in the clean energy development community is used to a certain amount of roller coaster. But at some point, the roller coaster stops. But we’re hearing a lot of clients saying, ‘Let’s get off the ride and see what happens before we move forward.’”

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