Utilities and Information Technology: Energy & Technology

The industries described in this segment include companies that provide electric, wood, and gas heating systems, cooling systems, renewable energy programs, and Internet services in the Lower Eastern Shore region. Geothermal is still the most popular source of renewable energy in the region, yet the implementation of offshore wind‐generated energy has recently experienced some investment. Broadband Internet access, in the rural areas of Somerset County especially, continues to limit the types of industries and employment opportunities there. The inability to access the Internet means individuals are unable to work from their residence. In turn lack of high speed internet services discourages companies from locating in the region. Increasing the availability of broadband Internet is critical in attracting entrepreneurs and start‐ups to the area. Additionally, large scale farming reliant on sophisticated equipment may also be hindered by the availability of broadband internet resources.

In terms of Utilities and Information Technology, the Lower Eastern Shore has both a unique geographic disadvantage and a unique advantage that need to be addressed. The main transmission lines coming from the north and ending at the southern tip of the Delmarva Peninsula have the potential for creating major economic disruptions if the supply is disrupted. The need for other pathways and/or for increased local generation is an ongoing concern. On the other hand, the proximity of the region to major urban metropolitan clusters of the Mid‐Atlantic region provides a potential opportunity for back‐office or back‐up centers to be located here if the IT infrastructure can be improved and enhanced.

The highest percentage of those with broadband Internet access possess a Bachelor’s degree or higher, with the lowest percentage being those with less than a high school diploma or equivalent. The Eastern Shore Regional GIS Cooperative (ESRGC) at Salisbury University is currently compiling more extensive research on the technological landscape of the Lower Eastern Shore. This research should be completed in the summer of 2019.

Over $19 million was invested in 569 renewable energy projects in the Lower Eastern Shore in 2017. Energy efficiency projects in the region also contributed to over 4 million kWh of electricity savings in 2017. Another encouraging finding from the energy industry is the total number of households on public assistance income in the past 12 months in all 3 counties has decreased from 2013 to 2017.

The rising cost of producing electricity has contributed to the level of energy poverty on the Lower Eastern Shore. While the use of renewable energy in the production of electricity is a viable option, there remain concerns regarding reliability due to its dependence on weather patterns. These variables limit its impact on energy prices and create more instability within the grid. Renewable energy also requires large plots of land to set up and monitor the energy‐producing technology such as solar. This creates competition for cleared land with the agriculture industry as well as additional maintenance to ensure the panels remain functional throughout their lifespans.

On the other hand, the renewable energy industry as a whole tends to creates high‐tech jobs that positively affect the region’s workforce and economic development, while remaining up‐to‐date with the nation’s movement towards more environmentally friendly energy sources.

Investment in nuclear energy continues to face political challenges, with the main controversy being the safety of nuclear power plants. However, the cheaper costs associated with producing nuclear energy is a critical benefit and bargaining point for utility companies and politicians in favor of nuclear energy use.

A specific energy sub‐sector with growing economic importance for the region is natural gas. This growing importance requires a more in‐depth look at how this energy option fits into the region’s economy. Existing economic development on the Lower Eastern Shore of Maryland is concentrated in a highly disproportionate manner. Relatively speaking there are two economic clusters in the region. They are Salisbury (Wicomico County) in the northwest quadrant of the region and Ocean City/Berlin/Ocean Pines (Worcester County) in the northeast quadrant of the region. To varying degrees each quadrant has access to natural gas pipeline infrastructure. The two southern quadrants of the region (all of Somerset County and the southern portion of Worcester County) do not have access to natural gas pipeline infrastructure.

Consequently, there is a marked absence of an economic cluster in those quadrants relative to the two northern quadrants. Extension of natural gas pipeline infrastructure from Salisbury south along the US 13 transportation corridor would significantly balance the distribution of this resource. This in turn would lead to the creation of two additional economic clusters in the region (Princess Anne, Somerset County) for the first stage of pipeline extension and Pocomoke City (Worcester County) for the second stage. Later incremental extensions east along MD State Highway 413 to communities including Westover, Marion Station and Crisfield would further improve distribution of this energy resource.

Such an extension would have the following consequences:

• More proportionate distribution of economic development in the region
• Increased choices of energy sources
• Less expensive energy source for persons of limited means
• Fewer emissions than other fossil fuel generated electrical sources
• Carbon offsets
• Improved resiliency of economy following natural disasters
• Ability to convert refuse to natural gas and feed distribution system
• Grant availability to help subsidize installation and first five years of implementation