Program funding and eligibility
Maryland has begun accepting applications for a competitive auction program providing up to $200 million, approximately 267.2 billion won, over two years for large-scale renewable energy projects, including solar power and energy storage systems (ESS). Projects will be selected based on the lowest support cost per unit of expected electricity supply, calculated from the grants requested by developers. The aim is to expand in-state generating capacity in response to rising electricity demand and reduce electricity bill burdens over the long term.
According to the Megawatts for Maryland program announced by the Maryland Energy Administration (MEA) on October 26, local time, up to $100 million, approximately 133.6 billion won, will be provided in fiscal year 2027, with plans to secure an additional budget of the same size for fiscal year 2028.
The grants will be funded through Maryland's Strategic Energy Investment Fund (SEIF). However, the $100 million for fiscal year 2028 is an anticipated funding amount, and the amount actually available for disbursement may vary depending on future budget availability.
The program is based on the Utility RELIEF Act, passed by the Maryland legislature this year. Governor Wes Moore signed the legislation on May 12, and the energy administration has now formally opened applications after consulting developers and establishing detailed funding criteria.
Eligible projects include large-scale renewable energy generating facilities and ESS to be built in Maryland. Grants can cover part of the development, construction and grid connection costs of generating plants and storage facilities.
According to the funding notice released by the energy administration, renewable energy generation projects must have a rated alternating-current output of at least 5 megawatts (MWac). Eligible sources include solar, onshore wind, biomass, geothermal and other renewable energy sources recognized by Maryland as Tier 1.
However, renewable energy generation projects participating in net metering are excluded. This means the program targets large-scale generation projects supplying electricity to the grid, rather than small residential solar installations.
Battery ESS must have an AC-side storage capacity of at least 20 megawatt-hours (MWh) and a discharge duration of at least 4 hours. Both standalone ESS and storage facilities installed at the same site as renewable energy generating facilities may apply.
Hybrid projects combining generation facilities, such as solar power, with ESS are also eligible. However, projects seeking grants for both generation and storage facilities must meet the minimum capacity requirements for each.
Eligible projects must be physically located in Maryland and be pursuing a connection to regional grid operator PJM or a utility distribution network. They must also have secured site-use rights and begun the relevant permitting procedures.
Auction process and payment conditions
Rather than paying a fixed grant amount uniformly, the program uses a sealed-bid auction in which developers competitively propose the level of support they need.
Developers submit their requested grant rate per megawatt-hour (MWh), based on the electricity their generation and storage facilities are expected to supply over their operating lives. The energy administration uses a standardized calculation method to give priority in its evaluation to projects with lower grant costs relative to expected electricity supply.
The bid rate is not the price at which electricity is sold in the power market, but the grant required for a project expressed per unit of expected electricity supply. The total funding request is calculated by accounting for the facility's expected operating life, electricity generation and performance degradation.
In principle, grants for individual projects range from a minimum of $1 million, approximately 1.336 billion won, to a maximum of $80 million, approximately 106.9 billion won. However, the energy administration may adjust the maximum grant threshold if it considers this necessary.
Applications proceed in two stages. The first-stage application deadline is November 30, 2026. By then, developers must submit information including facility size, site control, and progress on grid connection and permitting.
Only developers deemed eligible in the energy administration's first-stage review may participate in the final price auction. The second-stage deadline is January 22, 2027, when developers must submit additional documents, including their requested grant rate per MWh and financial models.
The energy administration plans to select projects for funding in spring 2027. Grants will not be paid immediately upon selection. Payment requires projects to enter commercial operation and meet the conditions set out in their grant agreements.
Electricity demand and expected effects
Maryland's decision to support large-scale generation projects comes amid rising regional electricity demand and electricity bills.
Maryland falls within the territory of PJM, the power market operator serving the US Midwest and Mid-Atlantic region. The state government said regional electricity demand is growing faster than supply capacity, creating pressure from electricity procurement and transmission-related costs.
Rising electricity demand from data center expansion is also cited as a major issue. In September, Governor Moore issued an executive order intended to prevent existing electricity consumers from bearing the burden of electricity price increases associated with data center development.
The state government aims to secure hundreds of MW of new clean energy supply capacity through the program. According to the Maryland Energy Administration, this would be enough to supply the annual electricity needs of more than 150,000 households.
However, the targeted generating capacity and electricity bill savings are not yet confirmed results. Actual deployment will depend on the projects participating in the competitive auction, the final selection results, and construction and grid connection schedules.
Maryland is also expanding ESS deployment outside this competitive auction. On October 1, the state Public Service Commission (PSC) conditionally selected 2 battery projects totaling 440 MW through a separate energy storage system support scheme. These projects involve storage facilities with a 4-hour discharge duration and are covered by a scheme separate from the grants under this competitive auction.
The state government expects new renewable energy facilities and storage systems to help increase regional electricity supply and ease grid pressure during periods of concentrated demand. However, because power plant construction and grid connection take time, residential electricity bills will not fall in the short term.
In the official announcement on October 26, Maryland Energy Administration Director Kelly Speakes-Backman said, “Renewable energy and energy storage system projects are the fastest, cleanest and least expensive options for expanding local electricity supply. We need to increase in-state generation to meet electricity demand and reduce costs. Megawatts for Maryland will help build a more affordable, resilient, clean and flexible electricity grid for all Maryland residents.”
Original Korean article: aitimes.com
English brief by Korea Wind Intelligence, koreawindintel.com
