Local Content Policy: Delaware Energy Solutions Act of 2024


The Delaware Energy Solutions Act of 2024 is a comprehensive piece of legislation aimed at transitioning Delaware to renewable energy sources, with a significant focus on offshore wind power. Here are the key points:

  1. Legislative Purpose: The Act aims to help Delaware meet its net-zero carbon emissions goals as outlined in the Climate Change Solutions Act of 2023 by transitioning to renewable energy sources​.
  2. Offshore Wind Power: It prepares for offshore wind to be a significant part of Delaware’s energy future, authorizing the procurement of 800 to 1,200 megawatts of offshore wind power if costs are competitive​.
  3. Cost Control: The Act caps the cost of offshore wind projects at 110% of the “Delaware Benchmark Price,” which is the average price Delmarva Power has paid for power over the prior three years​.
  4. Solicitation Process: The State Energy Office (SEO), with approval from the Public Service Commission (PSC), will issue solicitations for offshore wind projects. The process includes public consultation and must demonstrate that the project is in the public interest​.
  5. Community and Environmental Benefits: Solicitations will consider not only price but also non-price criteria such as community benefits, workforce development, and environmental impact​.
  6. Coordination with Other States: The Act allows for coordination with other states in procuring offshore wind power, potentially lowering costs and increasing project viability​.
  7. Inflation Adjustment: Developers are allowed to adjust costs by 2% annually to account for inflation, aiming to prevent the economic issues that have caused project cancellations in other states​.
  8. Regulatory Oversight: The PSC will review and approve all solicitations and contracts, ensuring compliance with statutory and solicitation requirements​.
  9. Support and Skepticism: While the Act has significant support for its potential environmental and economic benefits, some critics argue it could be more costly than other energy sources​.
  10. Implementation Timeline: The Act has passed both the Senate and House and is awaiting the Governor’s action​.

This Act represents a major step forward in Delaware’s commitment to renewable energy and climate change mitigation efforts.