Maryland Launches $200 Million Program to Cut Electricity Bills

Governor Wes Moore announced on Monday that the state is launching a $200 million program to boost in-state energy generation and lower electricity costs for residents. The initiative, titled Megawatts for Maryland, will operate over the next two years and is administered by the Maryland Energy Administration. It was established under the Utility RELIEF Act, which Moore signed into law earlier this year.

Rising energy demand in the region is outpacing available supply, contributing to higher utility bills for Marylanders. The new program aims to add hundreds of megawatts of clean power to the grid. This increase is expected to power more than 150,000 Maryland homes annually. Moore stated that the administration is using every available tool to provide relief as energy costs rise across the region and the country.

Legislators emphasized that lowering costs for families is a top priority. Senate President Bill Ferguson noted that the program will bring more renewable energy onto the grid to increase supply and help lower utility bills. House of Delegates Speaker Joseline A. Peña-Melnyk added that the state made increasing energy supply a central part of the Utility RELIEF Act. She described the program as a $100 million investment that puts that commitment into action through a competitive process.

Kelly Speakes-Backman, director of the Maryland Energy Administration, said that renewable energy and storage projects offer the quickest and lowest cost option for developing local supply. The administration believes more in-state power generation is necessary to meet demand and reduce costs. The program is designed to support a more affordable and resilient grid for all residents.

The program will draw on up to $100 million annually from the Strategic Energy Investment Fund. Grants will be awarded to developers of renewable energy generation and storage projects. These funds will help offset costs associated with development and construction. The initiative also aims to fill investment gaps created when the federal government canceled investment tax credits from the Inflation Reduction Act.

Developers must go through a two-stage competitive auction process to receive funding. The deadline for Stage 1 applications is November 30, 2026. Only applicants who are eligible in the first stage may bid in Stage 2, which has a deadline of January 22, 2027. Stage 1 requires a preliminary application establishing eligibility, while Stage 2 requires a bid price and additional documentation.

This launch follows other actions by the Moore-Miller administration to address energy costs. In September, Moore issued an executive order on data center development to protect ratepayers from price hikes. The administration also delivered $200 million in direct rebates last year and $100 million in direct relief through the Utility RELIEF Act. In May, Moore addressed PJM executives, urging the organization to take accountability for rising rates.