Details renewable energy, community and lease benefits

WILMINGTON, Del. – Governor John Carney and the Delaware Department of Natural Resources and Environmental Control (DNREC) officials have signed agreements with US Wind to detail renewable energy, community and lease benefits to Delaware and its residents worth more than $128 million as the company builds two proposed offshore wind projects in the coming years.

The finalization of the agreements Monday came after US Wind received needed federal and state environmental and permit approvals in December 2024 for the first US Wind project, and about a year after the initial announcement of negotiations on the agreements.

The finalized agreements include:

• An agreement with DNREC’s State Energy Office to provide 150,000 renewable energy credits (RECs) each year associated with the wind generation, which will be transferred to Delaware utilities to help them meet clean energy requirements, thus lowering customer bills. The RECs have an estimated value of $76 million over the life of the projects.

• An agreement for US Wind to fund coastal waterway dredging, clean energy workforce training, environmental scholarships, and resiliency and capital projects at state parks. The community benefits agreement is worth $40 million over 20 years.

The three agreements facilitate what are likely to be among the first wind projects in operation in the mid-Atlantic. The projects will sell carbon-free power into the regional power grid, and this new source of power generation is projected by US Wind to lower electric costs for Delaware ratepayers by up to $253 million over 20 years. US Wind will also invest more than $200 million in transmission system upgrades.

“With the recent federal and state project approvals, we are ready to reap the environmental, health, workforce, energy cost and community benefits from this needed transition to renewable energy,” said Governor Carney. “Delawareans will benefit in numerous ways from this important agreement.”

“The DNREC State Energy Office’s recently released State Energy Plan emphasizes the need for offshore wind development in order to reach our emissions reduction goals, and the need to consider partnerships with other states and wind project developers to reduce costs,” said DNREC Secretary Shawn M. Garvin. “Additionally, the funding for dredging, resiliency and parks projects and workforce training will provide needed resources to protect and preserve Delaware’s natural resources for decades to come.”

“These agreements signify our continued commitment to providing meaningful and lasting benefits to the people of Delaware from our projects,” said Jeff Grybowski, US Wind CEO. “Our project will deliver a massive amount of new electricity directly into the regional electric grid in Delaware, which means a lot of benefits locally. Specifically, we will fund over $200 million in upgrades to the transmission system, resulting in a much stronger and more reliable local grid and good jobs for local electrical workers. Delivering this new electricity to the power grid in Delaware will also lower electricity bills for Delawareans, including Sussex County residents. We’re grateful for the continued partnership with the state and look forward to working together for years to come.”