DOVER – The House passed legislation Sunday to prepare the state for the procurement of offshore wind energy.
Senate Bill 265, sponsored by Senator Stephanie Hansen and Representative Debra Heffernan, would aid in developing the necessary infrastructure to facilitate a transition to carbon-free energy sources.
It will do so by creating a detailed framework for the state’s solicitation, consideration, and potential approval of a future offshore wind project.
“The passage of SB 265 will open the door to offshore wind energy procurement in our state. This is a monumental step toward embracing a cleaner, more sustainable future, and helps to ensure that we stay on track to meet the targets outlined in the Climate Solutions Act,” said Rep. Debra Heffernan, Chair of the House Natural Resources & Energy Committee.
“It will take time before we see a turbine in Delaware, but this is still a huge feat. We have now begun the process to ensure that Delaware is ready to make the switch to clean energy when the best opportunity presents itself. Thank you to all of my colleagues who have worked with me to ensure this bill reflects the best interests of our environment and the citizens of our beautiful state.”
SB 265 would authorize the DNREC State Energy Office (SEO), the Delaware Public Service Commission, and the Delaware Renewable Energy Task Force to craft a solicitation for offshore wind.
Following public comment, the Public Service Commission would approve a final solicitation document and move forward in receiving and reviewing any proposals.
If a proposal meets all of the statutory conditions outlined in the bill, including coming in at 110% of the benchmark price, then the SEO will move forward and draft a proposed contract with the successful bidder.
By confining any successful bid to 110% of the benchmark price, SB 265 ensures the cost of energy is contained and doesn’t burden ratepayers.
If the State Energy Office or Public Service Commission are unable to find a deal for wind power that meets that benchmark price, the state will not move forward.
“Today’s passage of the Energy Solutions Act marks a major step forward in our ongoing work to reduce Delaware’s over-reliance on harmful fossil fuels,” said Sen. Stephanie Hansen, the prime sponsor of SB 265 and chair of the Senate Environment, Energy & Transportation Committee.
“Thankfully, we have the benefit of taking the best outcomes from our neighbors to make sure we are moving forward in a strategic and deliberate manner to create the best and most affordable results for Delawareans,” she said. “From updating Delaware’s Renewable Portfolio Standards to reducing greenhouse gas emissions, our collaborative efforts are working to create a healthier and more sustainable future for our children and grandchildren.”
There are many checks and balances in this process to ensure that the bidder who receives the final contract to supply offshore wind to the State of Delaware is the best possible choice.
The State Energy Office is directed to procure up to 1,200 megawatts of electricity to Delaware’s public utilities. Delaware’s municipal electric companies, rural electric cooperatives, and third-party providers will be able to purchase electricity generated from offshore wind if they choose. Delaware also could initiate its own project or partner with another state.
To qualify for further consideration, those proposals would need to have a term of at least 20 years, meet benchmark pricing guidelines, describe any potential impacts to the electrical transmission system and energy markets in Delaware, and specify a number of detailed economic costs and benefits for the state, including potential jobs created, supply chain requirements and workforce development needs, among other requirements.
Seven other east coast states, including neighboring New Jersey and Maryland, are taking action to utilize offshore wind energy.
By passing the Delaware Energy Solutions Act of 2024, the General Assembly is adding Delaware to that list. SB 265 now heads to the Governor’s office, where it is expected to be signed into law.