Delaware has initiated formal negotiations to play a pivotal role in two offshore wind projects spearheaded by US Wind in collaboration with Maryland. US Wind is on the verge of finalizing lease terms with Delaware for a critical component of the project – an underground cable landing at 3Rs Beach. This strategic landing is designed to facilitate the transmission of power generated by wind turbines to the regional electrical grid.
As negotiations progress, the potential lease agreement stipulates that US Wind will pay Delaware an annual fee of $350,000 for the landing, with provisions for annual increases. According to Greg Patterson, Governor John Carney's Infrastructure Implementation Coordinator, this collaboration is poised to position Delaware at the forefront of the mid-Atlantic's burgeoning wind energy landscape.
If the project unfolds according to plan, it is anticipated to be among the initial wind ventures operational in the mid-Atlantic region. Patterson underscores the positive impact on Delaware's clean energy goals, with the potential to lower utility bills for ratepayers. He explains, “Some of the credits that will be generated by the Maryland project will now be transferred to Delaware. We will be able to make those available to Delaware utilities, and so they will now have lower renewable energy credits that they will have to go satisfy from the open market.”
The collaboration brings forth substantial benefits for Delaware, including 150,000 renewable energy credits annually, estimated to have a lifetime value of $76 million. Patterson emphasizes Delaware's crucial role in providing the cable landing point and the reciprocal advantages of being integral to the region hosting the wind turbines.
In addition to the economic benefits, Delaware stands to gain funding for dredging projects in its coastal areas, clean energy workforce development training at local colleges and schools, an environmental education scholarship fund, and a Resiliency Fund earmarked for climate change initiatives at State Parks.
While US Wind progresses with the environmental permit acquisition process, including a public comment period, current plans indicate that the only visible evidence of the underground cable crossing will be a discreet manhole in the parking lot. This marks a significant step toward realizing Delaware's commitment to clean energy and regional collaboration in advancing offshore wind projects.
