Energy Updates


Delaware ‘Green Policies’ Have Failed and Become Dangerous

Why Affordable and Reliable Energy Should Matter to Everyone

 
By David T. Stevenson
Center for Energy & Environmental Policy
January 24, 2025
 
 
Delaware's Climate Action Plan sets ambitious goals: cutting greenhouse gas emissions in half by 2030 and reaching net zero by 2050. While progress has been made--with emissions already reduced by 43% in 2022--these achievements mask deeper issues. The reality is that Delaware's policies are failing, putting the state at risk of power shortages and forcing families and businesses to bear higher energy costs.
 
Our regional electric grid manager and federal agencies warn of a near-term electricity reliability cliff as baseload power plants close prematurely with no reliable replacements. Delaware legislators must address this looming crisis to prevent blackouts and rising energy bills that will hit families and businesses the hardest.
 
 
Emission Reductions:  Progress Driven by External Factors, Not State Policy
 
About 88% of the emission reductions achieved are from the electric generation sector. However, much of this progress is due to external factors rather than state policy:
 
  • Out-of-State Shifts and Natural Gas:  Over 40% of in-state electric generation has shifted to other states since 2005, accounting for 37% of emissions reductions. That exaggerates Delaware emission reductions and ignores the fact that emissions increase with longer transmission distances. Additionally, market-driven transitions from coal to lower-cost, lower-emitting natural gas power plants replaced 58% of high-emission coal generation. These changes, driven by economics-not Delaware "Green Policies"-accounted for the majority of reductions.
 
  • Decline in Electricity Demand:  Electricity demand fell by 9% due to energy-intensive manufacturing leaving the state and residential & commercial customers adopting LED lighting & energy-efficient appliances. Federal policies and cost-saving measures drove most of these improvements.
 
  • Minimal Impact of Wind and Solar:  Despite 20 years of mandates, wind and solar power contributed just 0.5% to the overall emission reductions as they only meet about 1% of electric demand, highlighting their limited effectiveness.
 
 
Offshore Wind & EV Mandates:  Expensive, Unrealistic, and Risky
 
Delaware policies are now focused on mandated increased use of offshore wind and electric vehicles. Both policies require federal regulations and subsidies that are unlikely to be continued by the Trump Administration. Both developments are facing headwinds beyond coming federal policy changes.
 
Offshore Wind:  This is the most expensive way to generate electricity, especially when the cost of extensive transmission upgrades, expensive battery backup, and redundant generation capacity requirements are added. One recent study concluded offshore wind could be twelve times as expensive as a new natural gas power plant. Federal environmental impact statements conclude offshore wind turbines will:
 
  • Dominate the ocean view.
  • Cause commercial fishing to abandon ocean lease areas.
  • Cause an increase in vessel collisions leading to more human deaths. 
 
The rich and powerful own properties on the north shore of Martha's Vineyard and the Hamptons. Based on those same concerns, planned offshore wind development off those coasts has been abandoned. Impacted towns and counties elsewhere have filed potentially successful lawsuits.
 
Electric Vehicles:  Delaware's mandate requiring 43% of vehicle sales to be electric by mid-2027 is equally unrealistic. EVs accounted for just 9% of Delaware sales in early 2024, and federal subsidies that make EVs more affordable are likely to be repealed. This policy risks harming local auto dealers, as consumers will purchase vehicles in neighboring states to avoid higher costs. Families already struggling with rising expenses will face even greater financial burdens under these mandates.
 
 
A "Green" Plan Built on Fantasy
 
Delaware's green energy plan assumptions are disconnected from reality. Here's how:
 
  • The plan relies on wind and solar growth to be 28 times faster over the next five years than the last twenty. 
 
  • Federal subsidies targeted for repeal must somehow continue. A price cap has been hit on wind power based renewable energy credits, freezing the increase in mandates.
 
  • New legislation authorizes up to 1,200 megawatts of offshore wind, but developers state that a price cap will stop any potential auction bids.
 
Without addressing these challenges, Delaware's plan risks collapsing under its own weight, leaving Delawareans with higher costs and unreliable energy.
 
 
A Call to Action:  Affordable, Reliable Energy Solutions
 
Delaware legislators must act now to protect residents from rising energy costs and unreliable power. The state can achieve cleaner, affordable, and dependable energy by investing in Small Modular Nuclear Reactors (SMNRs) and market-driven solutions. For example, *three new 250-megawatt SMNRs could generate enough in-state power to eliminate the 60% of electricity currently imported.
 
Delaware's Climate Action Plan claims to promote justice for low-income communities. Yet, it encourages policies that force residents to walk, ride bikes, and wait outside for buses-even in extreme weather. True justice means ending mandates that raise electric rates and car ownership costs, disproportionately harming working families.
 
Delaware's Climate Action Plan must return to the drawing board. Delaware families and businesses deserve better.
 
 

(Footnote: * US EIA, "Levelized Cost of Power, 2023," Nuclear is estimated to be $88.24/MWh, Lazard, Levelized cost of energy 2024, Nuclear average is $182/MWh.)

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