What to expect in 2024 on the development of offshore wind energy in Delaware

Molly McVety, Delaware News Journal
Updated ·5 min read

For years, Delaware has struggled with the development of offshore wind farms along the state's coast.

Last month, Delaware's future use of the renewable energy source became more certain, and several projects will be moving forward in 2024.

Gov. John Carney and US Wind began informal negotiations about using Delaware’s shore to support Delmarva wind projects.

The Biden administration wants to install 30 gigawatts of wind power in the United States by 2030 and Delaware has a goal to reach 40% renewable energy usage by 2035. Offshore wind is often touted as a renewable energy solution to reach these goals, but ideological divides and economic factors often hamper progress.

Here’s what to know about the possibility of offshore wind development in Delaware, including a look at changes that were made this past year.

Carney moving forward with US Wind

A large wind turbine in Massachusettes.
A large wind turbine in Massachusettes.

On Dec. 19, Carney announced the beginning of negotiations between Delaware and US Wind regarding two of its projects, Marwin and Momentum Wind. Both projects would need to use Delaware's shore to connect to the power grid.

If US Wind is to move forward with its Maryland projects, they have to get Delaware’s permission to use 3Rs Beach in the Delaware Seashore State Park to connect the turbines to the existing Delmarva Indian River substation facility near the Indian River Power Plant.

On Dec. 20, US Wind purchased 140 acres of land surrounding the nearby NRG Energy powerplant substation for around $20 million. The power plant itself was not included in the sale.

US Wind will pay Delaware a lease payment of $350,000 per year, with a 3% increase every year. The informal agreement also prohibits construction between May and September to ensure that the park can be used by the public. Public information sessions will be held, but there are no specifics as of yet.

US Wind also claims the projects will:

  • Reduce electric utilities by $329 million over the 20-year contract term, the equivalent of reducing the average residential ratepayer’s annual electric bill by $9.

  • Increase the reliability of the local electric grid and reduce “congestion costs” to Delaware ratepayers.

  • The company will provide $200 million in funding for upgrades to the transmission system around the Delmarva peninsula.

  • An additional $40 million will be paid to the state for dredging local waterways for the sake of boaters and the Inland Bay’s ecosystem, workforce development and other programs for environmental stewardship and resilience funds.

US Wind gave a formal presentation to the Delaware Association of Coastal Towns, which includes Henlopen Acres, Rehoboth Beach, Dewey Beach and Bethany Beach, to talk about the community benefits.

Some of the benefits include US Wind supplementing each town with around two million dollars per year over the next twenty years as well as other grid and transmission upgrades. The association representing Delaware's coastal towns will evaluate the offer and proceed with discussions in their public meeting processes.

Other recent developments

This move follows a year of other political moves aimed at bringing offshore wind to the First State.

A bill passed in August directed the state’s environmental agency to work with transmission company PJM to study the possibility of offshore wind development, creating a report for the governor and General Assembly about the findings.

The federal government is also eyeing Delaware’s waters as a site for developing offshore wind. In August, the federal Bureau of Ocean Energy Management announced that more than 100,000 acres off the coast of Delaware had the green light to potentially be used for offshore wind farm development. A majority of the area's rights are controlled by US Wind

The area sits between around 12 and 30 miles off the Delaware Bay, a spot that is mainly used for surf clam and scallop fishing. For a farm to be approved, Delaware would first have to choose a developer, draft up policies and regulations and ensure that the farms can be connected to an electrical grid on shore. No official leases or partnerships have been made.

What projects are in the works?

Skipjack, Orsted

This map shows where an offshore wind lease area is along Delaware's coast. The yellow portion is where the Skipjack Wind Farm will be placed.
This map shows where an offshore wind lease area is along Delaware's coast. The yellow portion is where the Skipjack Wind Farm will be placed.

Danish energy company Orsted has been investing in East Coast offshore wind for years. In November, the company announced that due to financial and supply chain complications, they would be discontinuing two of their New Jersey projects.

Skipjack, Orsted's Delmarva venture, is still continuing to advance.

Skipjack project details:

  • Located 20 miles off the Delaware coast

  • The project will generate enough energy to power more than 300,000 homes

  • Expected to begin commercial operations in 2026

Marwin, US Wind

Marwin and Momentum Wind are the two US Wind projects that will need to use Delaware's coast to connect to the Delmarva Power facility. Both are situated more off the Maryland coast.

The federal office in charge of managing offshore wind is expected to approve or disapprove the plans for US Wind to develop in this area by the end of 2024.

  • 22 turbines more than 20 miles offshore

  • Covers around 80,000 acres

  • Could power more than 92,000 homes for a year

  • Approved by Maryland in 2017

Momentum Wind, US Wind

  • 55 turbines, more than 15 miles offshore

  • Could power 250,000 Maryland homes

  • Planned to start generating in 2026

Delaware's offshore wind history

Fenwick Island State Park sits mostly empty on a breezy November day. A proposed plan would upgrade the park's amenities in exchange for allowing a Denmark-based company to build a offshore wind connection facility on 1.5 park acres.
Fenwick Island State Park sits mostly empty on a breezy November day. A proposed plan would upgrade the park's amenities in exchange for allowing a Denmark-based company to build a offshore wind connection facility on 1.5 park acres.

Offshore wind has been a big “maybe” in the state for over a decade. In 2008, Delmarva Power signed a deal to buy offshore wind power in a project that would have built dozens of turbines and powered over 50,000 homes. The deal fell apart a few years later due to financing issues.

A working group was established by Carney in 2017 to study opportunities for Delaware to become a base for offshore wind development.

Two years later the state quietly signed a memorandum of understanding with Orsted, which outlined a plan to lease 1.5 acres of Fenwick Island State Park to the company in exchange for $18 million in upgrades.

The plans were never put in motion since it required the go-ahead from the federal government to use federal waters. Nonetheless, a public meeting in Sussex County was attended by over 200 residents concerned about the future of their community’s land and waters.

Molly McVety covers community and environmental issues around Delaware. Contact her at mmcvety@delawareonline.com. Follow her on Twitter @mollymcvety.

This article originally appeared on Delaware News Journal: Offshore wind in Delaware: Carney opens more talks with wind company