Massachusetts and the Energy Equation: Balancing Imports with Innovation

The Gap Between Energy Production and Consumption in Massachusetts

The gap between the energy Massachusetts produces and the amount it consumes results in a reliance on out-of-state energy sources, making the Commonwealth vulnerable to price volatility and supply disruptions. According to the Energy Information Administration (EIA), Massachusetts consumed 1,282 trillion British thermal units (tBtu) and only produced 52 tBtu in 2023.  

The EIA also reported that Massachusetts is among the five lowest energy–consuming states per capita, even though it consumes 25 times more energy than it produces. However, the state has made advancing clean energy power generation a policy priority across multiple administrations.

Massachusetts Energy Production

Massachusetts has a range of renewable energy resources, but no fossil fuel reserves. In 2024, the EIA reported that Massachusetts’s only energy production came from wood and biomass waste and noncombustible renewable energy. For this reason, Massachusetts currently ranks 41st among the states in energy generation, with a total of 1.49 (tBtu). 

Figure 1: 2023 Massachusetts energy consumption estimates by end-use and electric power sector in tBtu. Data is from the Energy Information Administration. 

Imported natural gas generated more than half of Massachusetts’ electricity in 2023 according to Pioneer’s US DataLabs. The state relied heavily on imports of natural gas and petroleum to meet demand, in addition to its own renewable energy resources. Its solar generation was particularly robust, ranking 10th in the nation in 2023. 

Figure 2: Massachusetts’s total electricity generated by source in 2023. Data is from Pioneer’s US DataLabs. 

In comparison, the top five states for energy production (per tBtu) in 2023 were Texas (27,105), Pennsylvania (10,102), New Mexico (7,652), Wyoming (5,846), and West Virginia (6,090). The states with the lowest production were Vermont (19.61), Hawaii (17.52), Rhode Island (8.86), Delaware (3.31), and District of Columbia (1.82). 

Figure 3: Total energy production and consumption by state in 2023 per tBtu. Data is from the Energy Information Administration. 

Massachusetts Energy Consumption

Figure 4: 2022 Residential electricity use per capita (kilowatt hours) in the United States. Data is from Pioneer’s US DataLabs. 

Massachusetts’s largest energy consuming sectors in 2023 were transportation (427 tBtu), residential (370 tBtu), commercial (367 tBtu), and industrial (135 tBtu). This trend in growing consumption is not directly tied to sectors’ retail sales; transportation uses less than 1 percent of state electricity purchases, the commercial sector in Massachusetts has grown and uses about half of the state’s electricity, and the industrial sector has been experiencing a long-term decline in manufacturing while using about one-eighth. Total 2023 consumption of electricity per capita was 7,077 kilowatt hours, an increase after a steady decline since 2005. The residential sector consisted of 2,740 kilowatt hours per capita. 

Figure 5: Massachusetts energy consumption in 2023 by sector. Data is from Pioneer’s US DataLabs and the EIA. 

Energy Prices

Since 2015, Massachusetts has consistently been among the five states with the highest average retail energy price. In 2023, the national average retail price of electricity was $0.13 per kilowatt hour. New England’s prices were higher, with Connecticut at $0.24, Massachusetts $0.23, New Hampshire $0.23, Rhode Island $0.22, Maine $0.21, and Vermont at $0.18. As seen in US DataLabs, many states have followed a fairly linear trend while New England states have seen a sharp increase in the average retail electricity price since 2021.

Figure 6: 2023 average retail price of electricity nationwide per cent / kilowatt hour. Data is from Pioneer’s US DataLabs. 

As of March 2025, the average retail price of electricity to the residential sector in Massachusetts was 30.19 (cents/kilowatt hours), making it the fifth most expensive state. The national average is about 18, according to the EIA. Furthermore, the state ranked as the second most expensive state in natural gas residential prices ($24.98/thousand cubic feet), again following Hawaii in 1st ($47.43) with the national average at $14.  

Many factors contribute to Massachusetts’s burdensome energy costs, from aging infrastructure and growing energy transmission costs to imports affected by price volatility. 

One attempt to address some of the vulnerability Massachusetts faces is Governor Maura Healey’s energy bill that aims to cap increases in monthly electricity bills, cut unnecessary costs, and explore new energy options. However, researchers have found price caps can lead to a lack of investment, efficiency, and regulatory capture. Depending on the market structure and level of oversight, caps can ultimately lead to a higher shift in cost for consumers in the long run. Poorly designed caps could undermine the administration’s goal of investing in Massachusetts’s energy independence and reducing the disparity between energy production and consumption.  

Implications

The state is reliant on imports of natural gas and fossil fuels. In 2023, Massachusetts spent $15.6 billion on petroleum and $5.4 billion on natural gas. Furthermore, initial infrastructure and development costs for renewable energy resources are high, but their presence ultimately lowers prices for consumers. 

However, Massachusetts sets a high standard for clean energy consumption and energy efficiency. The state ranked sixth alongside Vermont for the lowest amount of CO2 emissions per capita across the country in 2022. This is likely due to its focus on using natural gases instead of relying on dirtier fuels like oil, gas, and coal. Investment in clean energy can also create good paying jobs and boost private sector innovation, even as it supports the state in reaching its goals for reduced emissions.  

Massachusetts consumes significantly more energy than it produces, which has left it exposed to outside pressures like federal tariff policy. While consumer prices continue to rise, clean energy production provides an avenue for the state to be more energy self-sufficient.