Dover, DE – On Sunday, the Delaware House of Representatives passed Senate Bill 265, a legislative step aimed at preparing the state for offshore wind energy procurement. Sponsored by Senator Stephanie Hansen and Representative Debra Heffernan, the bill focuses on developing the infrastructure necessary for transitioning to new, carbon-free energy sources.
The bill authorizes 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 will approve a final solicitation document and proceed with receiving and reviewing proposals.
If a proposal meets all statutory conditions, including coming in at 110% of the benchmark price, the SEO will draft a proposed contract with the successful bidder. This price cap aims to ensure the cost of energy remains manageable for ratepayers. If no suitable proposals are found, the state will not proceed.
The State Energy Office is directed to procure up to 1,200 megawatts of electricity for Delaware’s public utilities. Municipal electric companies, rural electric cooperatives, and third-party providers may also purchase this electricity if they choose. Delaware has the option to initiate its own project or partner with another state.
Proposals must have a term of at least 20 years, meet benchmark pricing guidelines, and detail potential impacts on the electrical transmission system and energy markets in Delaware. Additionally, they must specify economic costs and benefits, including job creation, supply chain requirements, and workforce development needs.
Offshore wind in Delaware has been met with strong mixed opinions over the past few months.
The bill now heads to the Governor's office, where it is expected to be signed into law.
