The Case for Offshore Wind

US Wind project will deliver massive energy and benefits

BY MIKE DUNMYER

IN DELAWARE and around the country, there is an urgent need for new power generation. A February 2025 report by the Brattle Group for ConservAmerica, “A Wide Array of Resources is Needed to Meet Growing U.S. Energy Demand,” found that the U.S. will require 50% more annual electricity production by 2035 and will need to meet 20% higher peak demand by 2030, and 30% by 2035. This demand growth is driven primarily by new data centers, which consume as much energy in one month as 10,000 homes would in one year. All kinds of energy will be needed to meet this increased demand. The Brattle report also says that new gas-fired generation and nuclear restarts planned to come online by 2030 will deliver only a third of projected peak demand growth. Fortunately, there are more than enough renewable energy projects in transmission interconnection queues to make up the difference. Without those resources, the supply-demand imbalance will cause energy costs to continue rising, crowding out other household spending and limiting business development. The same report also states that without wind and solar projects, U.S. GDP would lose $510 billion between 2024 and 2035.

This countrywide challenge is being felt in Delaware, too. In their summer report, PJM, which manages the 14-state grid that includes Delaware, recently forecasted for the first time that available generation capacity may not cover required reserves. In addition, because the two states with the most data centers in the nation — Virginia and Ohio — are also part of the PJM grid, energy costs and the threat of shortages will continue to grow in our own state.

There is a solution, however. US Wind’s fully permitted offshore wind project has a nameplate capacity of more than 1,700 megawatts, which is more than two times all existing and planned capacity on the Delmarva Peninsula. The project could begin delivering power by the end of 2029 and, once fully built, will provide significant cost savings to Delaware ratepayers. If the project were operating today, ratepayers would save $500 million a year in capacity costs alone (based on 2025 capacity auction pricing). Further analysis found that US Wind’s project would have saved ratepayers $1.43 million in power costs in just one hour last January.

In addition to ratepayer savings, US Wind will invest $400 million to strengthen the local grid, which will also create significant job opportunities for electrical workers, particularly those from the International Brotherhood of Electrical Workers. US Wind will also invest $40 million for coastal dredging, workforce development, and climate change resiliency, and $50 million for projects around Indian River Bay. US Wind will provide $25 million in subaqueous lease payments and will give the state 150,000 free renewable energy credits every year for 20 years ($76 million value). Meanwhile, Delawareans will have opportunities to be a part of the construction supply chain and ongoing operations and maintenance.

Delaware needs offshore wind, and US Wind is ready to deliver.

Mike Dunmyer is the Delaware development manager at U.S. Wind.