Maryland offers $200 million in grants for new power plants

Maryland households may see slower increases in electric bills, though immediate relief is not guaranteed. Governor Wes Moore announced the Megawatts for Maryland initiative on October 26. The plan allocates $200 million in competitive grants to developers building renewable energy and battery storage systems.

The state will distribute up to $100 million each year through the Strategic Energy Investment Fund. Officials project the new facilities will add several hundred megawatts of capacity. This expansion could supply electricity to more than 150,000 homes annually. The added local generation is intended to reduce pressure on the regional grid, which is currently experiencing demand growth that outpaces supply.

Developers must apply through the Maryland Energy Administration. The process involves two stages. Preliminary applications are due by November 30, 2026. Qualified applicants must submit final bids by January 22, 2027. Grant awards will favor proposals that require the lowest public subsidy relative to the amount of electricity produced.

The program operates under the 2026 Utility RELIEF Act, a law that also provided $100 million in direct relief to utility customers. Moore has separately urged PJM, the regional grid operator, to address rising costs driven by high electricity demand, including consumption from data centers.

New facilities will not lower bills immediately. Developers must secure financing, complete construction, and begin operations before the new capacity reaches the grid. The governor’s office states the grants are designed to strengthen Maryland’s energy supply and improve affordability over the long term.