WILMINGTON, Del. - Delaware Gov. John Carney announced the start of formal negotiations between the Department of Natural Resources and Environmental Control, on behalf of the state, and US Wind regarding two planned offshore wind projects. Included is an outline of potential agreements for a state land lease, energy credits to reduce electricity costs and funding for workforce development and environmental projects.
Offshore wind has been an ongoing topic along the coast of the Delmarva Peninsula for years. Despite the interest from energy companies, one major issue has been finding a landing site for cables to be brought ashore from sea. According to the initial term sheet, which was signed Tuesday by the governor and US Wind CEO Jeffrey Grybowski, negotiations are in place to do just that.
US wind is looking at a lease at 3Rs Beach in the Delaware Seashore State Park for an underground cable landing to deliver power from the turbines to the regional electrical grid. The route would come ashore just south of the Indian River Inlet and run under the Indian River Bay to a Delmarva Power substation at the Indian River Power Plant. Multiple other routes have been proposed, as well.
The lease for the cable landing would cost $350,000 a year with annual 3 percent increases, and its negotiation will be separate from required environmental permits US Wind will need to obtain for cable routes. It also includes the mention of refraining from construction during the park's peak summer season.
Before finalizing the potential land lease, Delaware State Parks and US Wind will hold a public information session to share details of the work to be done at the 3Rs Beach. Public comment is also included in the administrative process for environmental permits. According to the governor's office, the only visible evidence of underground cable crossings would be a manhole in the beach parking lot when US Wind's plans are complete. It also says the land lease with Delaware State Parks does not guarantee a favorable outcome of environmental permits.
Carney says the agreement means Delaware could become an active player in the growing offshore wind industry, and that it aligns with other objectives including emission reduction targets and meeting the net-zero carbon goal set last year by House Bill 99.
"Transitioning to clean energy sources is essential to reducing manmade greenhouse gas emissions that are driving climate change, and these wind projects are part of that transition," Carney says.
According to US Wind's website, the projects, called MarWin and Momentum Wind, will provide clean energy to 342,000 Maryland homes with up to 77 combined turbines located at least 15 miles from shore. Marwin, the smaller of the two projects, is scheduled to commence commercial operations in 2027 with Momentum Wind to follow the next year.
The governor's office said Tuesday that "Delaware's residents, the people, communities and ratepayers of Delaware, receive benefits from the development, construction and operation of the projects." It listed funding for dredging projects in Delaware's coastal areas and for clean energy workforce development training at Delaware colleges and schools along with a resiliency fund for climate change projects at state parks.
Additionally, 150,000 renewable energy credits could be received each year in association with wind power generation, which the office says would be transferred at no cost to Delaware utilities to help them meet clean energy requirements and lower customer bills. The credits are estimated at $76 million over the lifetime of the projects.
The agreement outline proposes that US Wind will provide $40 million for community benefits projects over 20 years, with specific amounts and projects to be determined.
Grybowski says offshore wind will help to lower electricity bills for the people of Delaware and will improve air quality across the state by reducing reliance on burning fossil fuels.
"We plan to deliver a massive amount of clean energy directly into the electric grid in Delaware and that direct link means a lot of benefits locally," says Grybowski.
These projects could become some of the first wind projects in operation in the mid-Atlantic, if approved, though a lease sale for additional wind farm areas was announced earlier this month by the Department of the Interior.
In addition to the land lease negotiations, US Wind and other offshore wind projects must go through a federal permitting process separate from state processes. Public comment will be included. The Bureau of Ocean Energy Management is currently already considering input from a recent public comment process on the projects' environmental impact.