Pending Law to Make Offshore Wind Power a Part of Delaware’s Future Despite Concerns
A bill pending Governor John Carney’s signature will likely make offshore wind power a significant part of Delaware’s future despite concerns over its costs and impacts. The Delaware Energy Solutions Act of 2024聽would give the State Energy Office broad new authority to negotiate 20-year contracts to purchase power produced by wind farms in Atlantic Ocean waters. The bill is the latest in a series of energy and environmental policy initiatives driven by the Carney administration. The bill’s preamble includes the following statement: “This act…aims to prepare for and facilitate the upcoming energy transition, which will be an essential component of the implementation of the Climate Change Solutions Act.”
The Delaware Energy Solutions Act of 2024–Senate Bill 265 (as amended),
Additional Information from the Delaware House of Representatives Newsletter:
“It authorizes the State Energy Office, with the approval of the Public Service Commission, to issue solicitations to procure electricity from offshore wind,” said State Rep. Debra Heffernan (D-Bellefonte, Edgemoor), a prime sponsor of the legislation. “The bids must be no more than 110% of the Delaware benchmark price.”
Rep. Heffernan applauded a Senate amendment tacked onto the bill that prevents the consequences of any wind power contract from falling exclusively on a single utility’s ratepayers. “That means Delaware could pair with another state, with another utility, or with a municipality and therefore鈥ne utility, their ratepayers, don’t bear the whole cost. That is a great amendment that really makes sure that we don’t burden any one group of ratepayers with this cost.”
In a column written in May, David T. Stevenson, Director of the Caesar Rodney Institute’s Center for Energy & Environmental Policy, criticized the legislation, calling it “disastrous for ratepayers.” He noted that only the first-year price will be compared to the benchmark price, potentially skewing the starting point for the long-term contract.
Mr. Stevenson said the measure also allows for an annual increase of up to 2%. “That could add $2.5 billion to Delmarva Power’s electric costs over twenty years, or $200 per year on residential electric bills,” he said.
Mr. Stevenson wrote that while polling summarized by the University of Michigan showed that half of respondents were willing to pay $5 to $20 per month more on electric bills for 100% wind and solar power, the same study showed that only about 1% of ratepayers followed through when they had such an opportunity. “The Delaware Electric Cooperative offers 100% solar for $10 per month extra,” he said. “The participation rate is 0.3%.”
The impact of the legislation could be considerable. Under the bill, the State Energy Office is authorized to seek solicitations for offshore wind power up to a collective maximum generating capacity of 1,200 megawatts. Based on the average generating capacity of an offshore wind turbine (55%), this measure would allow state officials to contract for enough deliverable power to service 460,000 homes鈥攁bout the total number of housing units in Delaware.
Two years ago, the governor enacted a statute requiring that 40% of electricity sold by Delaware utilities be renewably generated by 2035. Last August, he signed the “Delaware Climate Change Solutions Act of 2023” into law, committing the state to reduce net greenhouse gas emissions by at least 50% over the next six years (compared to 2005). By 2050, the state aims for net zero emissions.
Delaware’s Climate Action Plan will serve as the framework to guide all state agencies toward achieving these goals. The 90-page document calls for dozens of actions, such as implementing new building codes, adopting California’s Advanced Clean Trucks Program, and new HVAC system mandates. State regulations requiring the increasing sale of new zero-emission vehicles (predominantly electric vehicles) are part of the initiative.
“This legislation is more the product of ideology and blind optimism than a balanced approach to weighing the advantages and disadvantages of offshore wind power,” said聽State Rep. Rich Collins (R-Millsboro). “Proponents tout the ‘clean’ aspects of turbines while ignoring the significant carbon footprint associated with assembling, placing, and maintaining each of these mega structures in the ocean. Also conveniently forgotten is that offshore wind power is comparatively expensive, may harm seabirds and marine life, and its fluctuating unpredictable output makes it unsuitable for providing the constant base load needed for a stable power grid. Additionally, the potential to negatively impact our billion-dollar tourism industry seems to have escaped any serious consideration.”
