Delaware Governor Initiates Negotiations with US Wind for Offshore Wind Projects

By Editor


In a significant development for Delaware’s renewable energy landscape, Governor John Carney has announced the commencement of formal negotiations between the state and US Wind concerning two ambitious offshore wind projects: MarWin and Momentum Wind. The negotiations aim to solidify agreements encompassing a lease of state land, energy credit allocation to reduce electricity costs, and substantial funding for workforce development and environmental initiatives.

The initial Term Sheet, inked by Governor Carney and US Wind’s CEO Jeffrey Grybowski, sets the stage for discussions on a potential lease at 3Rs Beach within Delaware Seashore State Park. This lease would facilitate the installation of an underground cable, enabling the transmission of power from the offshore turbines to the regional electrical grid.

Outlined within the agreement are comprehensive plans ensuring that the development, construction, and operation of these projects bring substantial benefits to Delaware and its residents.

Key highlights of the outlined plans include:

Allocation of 150,000 renewable energy credits (RECs) annually, valued at approximately $76 million over the projects’ lifespan, aimed at aiding Delaware utilities in meeting clean energy requirements and reducing customer bills.

Funding support for dredging projects along Delaware’s coastal areas.

Investment in clean energy workforce development programs within Delaware’s educational institutions.

Establishment of an environmental education scholarship fund.

Creation of a Resiliency Fund targeting climate change projects within State Parks.

Replenishment of the 21st Century Fund, which supports various environmental and conservation projects within State Parks.

The proposed agreement stipulates that US Wind commits $40 million over 20 years for community benefit projects, with specific allocations to be determined for each initiative.

The agreement includes details regarding the lease for the cable landing at 3Rs Beach, set at $350,000 annually with incremental increases, and assures a separate negotiation process for environmental permits required for US Wind’s cable routes.

US Wind’s projects are anticipated to inject carbon-free power into the regional grid, potentially reducing regional energy prices and capacity charges by up to $253 million over two decades. US Wind also plans to invest over $200 million in transmission system upgrades.

The federal permitting process for the US Wind projects, overseen by the Bureau of Ocean Energy Management (BOEM), is ongoing and distinct from any state-level processes.

US Wind’s filing with BOEM outlines multiple cable routes, one of which involves a connection at 3Rs Beach, south of the Indian River Inlet, and an underground route to the Indian River Power Plant’s substation for integration into the regional grid. BOEM is reviewing public feedback on the projects’ environmental impact as part of the permitting process.

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