Delaware has finalized a benefit agreement with US Wind for allowing the developer to use a state park to run export cables from the offshore wind farms it hopes to build.

State officials announced Jan. 6 that the deal will be worth more than $128 million to the state and its residents over more than 20 years.

US Wind received key federal approvals in late 2024 for construction and operation of up to 2.2 GW of wind power generation capacity in three phases.

The developer has secured offshore renewable energy certificates from the state of Maryland for the first two phases, known as MarWin and Momentum Wind, rated at 1.1 GW combined.

US Wind’s 80,000-acre lease area sits at the latitude of northern Maryland, but the plan is to run the export cables farther north, to southern Delaware. US Wind wants to route them beneath a parking lot at the Delaware Seashore State Park, then under the Indian River Bay on their way to Delmarva Power and Light’s Indian River Substation in Dagsboro, Del.

The developer announced Dec. 10 that the state had approved three key permits to do this.

The Jan. 6 announcement by the state Department of Natural Resources and Environmental Control (DNREC) centered on compensation to Delaware for allowing it. The agreements include:

• • 150,000 renewable energy credits per year — estimated lifetime value of $76 million — transferred from US Wind to Delaware utilities to help them meet clean energy requirements, thereby lowering customer costs.
  • $40 million from US Wind over 20 years for coastal waterway dredging, clean energy workforce training, scholarships and resiliency and capital projects at state parks.
  • $12 million-plus in 25 years of lease payments to Delaware State Parks for the underground cables.

DNREC said indirect benefits to the state and its people over 20 years include up to $253 million in reduced electric costs for consumers and more than $200 million in transmission system upgrades.

Maryland is an enthusiastic supporter of offshore wind and has set an 8.5-GW goal for itself. But it has encountered the same headwinds as other states in trying to meet that goal. Ørsted has placed its Skipjack Wind plan on indefinite hold amid challenging economics, and Maryland has allowed US Wind to seek higher compensation so it does not succumb to those economic challenges.

There also is the inauguration in two weeks of a president who has been openly hostile to offshore wind development, which may complicate or delay development of MarWin and Momentum. Donald Trump doubled down on his campaign trail rhetoric Jan. 7, telling reporters he wants zero wind turbines erected during his administration.

Closer to home, there is some popular opposition to wind development off the Delmarva shoreline.

Local media have reported that Sussex County denied a US Wind subsidiary the permit it needs to build a substation, that Ocean City is suing to reverse federal approval of the project, and that opponents have appealed DNREC’s approval of the export line’s placement.

But Delaware focused on the positive in its Jan. 6 announcement. DNREC Secretary Shawn M. Garvin said in the news release:

“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. 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.”