Sen. Stephanie Hansen, D-Middletown

legis.delaware.gov

Senate Minority Leader Gerald Hocker, R-Ocean View.

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Legislative Hall
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Dover, DE 19901
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By Joseph Edelen

DOVER— Delaware is once again taking steps toward welcoming an offshore wind industry along the First State’s coast.

The state’s interest in offshore wind has fluctuated over the past 15-plus years after a planned wind farm project off the Rehoboth Beach coast fizzled in 2011.

But Delaware’s interest in the renewable energy source began to resurface in 2017 after Gov. John Carney commissioned a working group to study the feasibility and necessity of offshore wind.

At the time, the group determined offshore wind to be too expensive, but a 2021 state-directed analysis from the University of Delaware’s Special Initiative on Offshore Wind reinvigorated the state’s determination of welcoming offshore wind into its green energy portfolio.

This has led to legislation led by offshore wind champion Sen. Stephanie Hansen, D-Middletown, over the last two years, which has once again put Delaware in a position to be a leader in wind energy amongst its East Coast counterparts.

The newest proposal is Senate Bill 265, known as the Delaware Energy Solutions Act of 2024, which legislates the necessary steps to procure offshore wind in the First State in alignment with reducing greenhouse gas emissions to at or below net-zero by Jan. 1, 2050 under the Climate Change Solutions Act of 2023.

“This isn’t a bill that says ‘Offshore wind at any cost.’ This is a bill that says, ‘Offshore wind so long as the cost is reasonable,’ and we’ve built into the bill this concept of energy no more than the benchmark price,” Sen. Hansen told the Daily State News.

Under the bill, the Public Service Commission would approve the State Energy Office’s ability to issue solicitations for the procurement of offshore wind projects that serve Delaware or partnerships with other states.

The legislation provides guardrails for the size of these projects, authorizing wind farms that produce at least 800 megawatts of energy but no more than 1,200 megawatts.

The procurement process would begin with a draft solicitation crafted by the State Energy Office if it is determined that the market would result in a bid no more than 110% of the benchmark price, which equates to the average price Delmarva Power has paid for renewable energy compliance over the previous three years.

During the consideration of Senate Bill 265 in the Senate’s environmental committee on April 24, Sen. Eric Buckson, R-Camden, expressed concerns about the cost these projects could have on the state and municipalities and how that would be reflected in Delawareans’ utility bills.

But, after a 2018 legislative working group dedicated to offshore wind recommended the energy source be considered at a later date due to high costs, the University of Delaware’s study and a 2023 analysis from the Department of Natural Resources and Environmental Control and Synapse Energy Economics determined that the price of these projects has reduced substantially.

“That’s why we decided to move forward with this. You have to remember this is the same administration that was in place in 2017 and 2018 … If those reports would have come back differently, we wouldn’t be having this conversation,” Sen. Hansen said.

“The medium and long-term trends in the market are showing that this is going to be economically (viable) for us to become involved in, and if it doesn’t become that way, then we have the Delaware benchmark price and we’re just not going to get involved.”

In December, the state began negotiations with developer US Wind for its two planned offshore projects regarding potential lease agreements for land use, energy credits to reduce electric costs for residents and workforce impacts.

The 22-turbine MarWin project would sit 20 miles offshore and produce 308 megawatts of wind energy; enough to power over 92,000 homes in Delmarva. The other initiative, Momentum Wind, would be 15 miles offshore, totaling 55 turbines that could produce up to 825 megawatts of energy.

During the final State of the State Address of Gov. Carney’s tenure March 5, he reiterated his commitment for Delaware to be active in the offshore wind industry and noted that legislation like Senate Bill 265 was forthcoming.

“We expect the (US Wind) agreement to bring more than $100 million in benefits to our state without raising rates,” he said. “We are pursuing legislation that will make Delaware more of an active player in offshore wind. It will allow us to directly purchase wind-generated renewable energy, and to explore partnerships with states in our region.”

Opponents to wind energy

Delaware’s interest in offshore wind energy has drawn opposition dating back to 2008, as critics have cited potential dangers to wildlife, the impact of turbines on the electric grid, the routing of cables through state parks and hits to tourism.

Those opponents include Senate Minority Leader Gerald Hocker, R-Ocean View, and Minority Whip Brian Pettyjohn, R-Georgetown, who following the governor’s annual address, noted that a majority of their constituents are against the idea, as well as bringing cables through Delaware Seashore State Park.

“We depend a lot on tourism, and when you interview our tourists who come here one week, two weeks a month, they would rather see the sunrise and the moon rather than blinking lights out there,” said Sen. Hocker, whose district includes a number of beach communities in Sussex County.

But, as the bill heads to the ready list for consideration by the full Senate, Sen. Hansen says offshore wind will be beneficial to the environment and Delaware’s economy, but could also provide a boost to tourism, which is the fourth-largest industry in the state, according to the Department of State.

“In fact, it’s generating a whole new tourism industry around the wind turbines, because you’ve got boat tours, sightseeing tours, offshore information centers,” Sen. Hansen said. “This is not something that’s going to hurt tourism. It’s going to generate more tourism, and it’s the right kind of tourism, which is tourism that shows Delaware is responsibly looking to the future.”

After Senate Bill 265’s release from the chamber’s environmental committee, it was placed in the finance committee for approval of its fiscal note. The legislation carries a $200,000 price tag for appropriated special funds in fiscal year 2025, with no recurring costs.

Should the legislation receive passage in the Senate once lawmakers return to Legislative Hall after bond committee hearings next week, it will head to the House of Representatives for further consideration.