DOVER -- If the Trump administration follows through with plans to revoke key permits for a controversial offshore wind farm that would be mere miles from the Delaware coast, the state could lose $128 million in community benefits that were previously negotiated.
Assistant Attorney General Adam Gustafson said in a court filing that the U.S. Bureau of Ocean Energy Management would move to vacate the permits for the two wind farms. Both wind lease permits were established by Maryland law, but since Ocean City, Md. stymied the project for years, offshore wind developers turned to Delaware as a way to connect to the electric grid.
"Our construction and operations plan approval is the subject of ongoing litigation, but we remain confident that the federal permits we secured after a multi-year and rigorous public review process are legally sound," US Wind Vice President of External Affairs Nancy Sopko said in an email.
Project developer US Wind said that the closest turbine to Bethany Beach would be 17 miles away. The project would include 121 wind turbines with much of the power and energy credits going to Maryland. It would generate up to 2,200 megawatts of energy for the Delmarva region.
Delaware environmental officials have already approved U.S. Wind's permits to install underwater transmission cables 15 miles to a planned substation near the Indian River Power Plant in Dagsboro. The wind farm was set to be operational by 2029 or 2030.
Under the Carney administration, the state had opened negotiations with US Wind in exchange for the right to use state waters and land. At the end of 2024, Gov. John Carney had successfully negotiated for 150,000 renewable energy credits each year when the project came online as well as $12 million for a 25-year lease.
US Wind would also fund waterway dredging, workforce training initiatives, environmental scholarships as well as various capital projects. All told, the community benefits portion was reported to be worth $40 million over 20 years.
The entire deal was reported to bring in $128 million in funding, renewable energy credits and various benefits to the state. In exchange, US Wind would be able to install tranmission lines in Delaware and federal waters, coming ashore to 3R beach and build a substation in Dagsboro.
The Sussex County Council blocked US Wind's plans to build the substation in December 2024. In a move to maneuver around the county's decision, the Delaware General Assembly passed a bill that would require the substation to be built, though it would be delayed until January 2026 to allow the courts decide the matter.
Delaware Gov. Matt Meyer told reporters last week that the community benefits agreement would likely not be in play if US Wind's project does not go through, but he was committed to finding other ways to fulfill the promises made in the agreement.
"We have an obligation to create environmental resilience and intergenerational sustainability in our communities across Delaware, particularly in the lowest lying areas of the state," Meyer said, noting that Hurricane Erin also flooded beach towns in Sussex County.
"The offshore wind provides community benefits grants us some potential resources to help us, but we're going to continue to do it regardless of whether that project goes forward," he added.
For Delaware, the ability to claim renewable energy credits is vital as the Renewable Portfolio Standards have set goals to encourage energy distributors to work with alternative power sources like wind and solar energy to reduce the amount of carbon dioxide emitted from traditional energy production. By 2035, 40% of the state's utilities must come from renewable sources.
Delaware's potential to claim up to 150,000 credits in renewable energy from the US Wind would be a significant step in reaching that goal.
Meyer said that he was interested in supporting other energy sources for the regional electric grid operator PJM Interconnection, even if the US Wind project does not come to fruition.
"It's really a math question- how many megawatts are we going to lose if offshore wind doesn't go forward? How are we going to replace that," Meyer said. "As a matter of policy we need to do everything we can to continue to push forward with energy generation. Some of it may be solar, some of it may be nuclear, some of it may be fossil fuels."