Court rules with State, clears way for offshore wind substation critical to Delaware’s energy future

Delaware ratepayers won a significant victory Wednesday as the Court of Chancery upheld the General Assembly's authority to ensure construction of a critical electrical substation needed to bring offshore wind power to Delaware ratepayers.

"Delawareans are paying more for electricity than ever - and the last thing they need is a political fight obstructing the homegrown energy that will lower their bills," said AG Jennings. "Today's ruling makes clear that Delaware's energy future is a statewide issue that should be decided by the whole State - not one municipality. We're going to keep fighting to protect this project and the affordable, reliable energy it will deliver to every Delawarean.

"We need to get politics out of our energy policy and focus on what actually lowers costs for Delaware families," said Governor Matt Meyer. "Delaware needs more energy, and wind is one of our natural advantages. At a time when the federal government is driving energy costs even higher, we have a responsibility to do everything we can to deliver clean, affordable energy here at home. I'm thankful to Attorney General Jennings and her team for their hard work and I look forward to this project moving forward."

In December 2024, Sussex County Council voted 4-1 to deny a permit for an electrical substation proposed by Renewable Redevelopment, LLC on land already zoned Heavy Industrial next to the Indian River Power Plant. The substation would serve as a critical link allowing electricity generated by offshore wind turbines to come ashore and enter the regional electric grid. Council denied the permit despite a unanimous recommendation to approve from Sussex County's own Planning Commission, which found that the project would not harm neighboring properties. In response, the General Assembly passed Senate Bill 159 in June 2025, providing that no county may deny a permit for an electrical substation that meets specific siting criteria - criteria that this project meets in full.

"Here in Delaware and across our region, we're in an energy supply and reliability crisis. I believe that we as elected leaders have an obligation to move swiftly to bring new energy generation projects online," said Sen. Stephanie Hansen, prime sponsor of Senate Bill 159. "Time and again, the courts have upheld state action to propel the US Wind project forward. Our energy supply and reliability are statewide issues and we can no longer afford to be parochial in our viewpoint."

Sussex County and the Town of Fenwick Island challenged the law in the Court of Chancery, arguing it violated separation of powers, was improperly titled, constituted illegal "spot zoning," and conflicted with existing state law. In a bench ruling Wednesday, the Court of Chancery rejected each of those arguments and granted summary judgment to the State and Renewable Redevelopment. The ruling affirms a foundational principle of Delaware law: zoning power belongs to the General Assembly, which may delegate, condition, or reclaim it as it sees fit. Sussex County was carrying out powers the State gave it - and the State was within its rights to step in when that power was used to undermine both statewide and regional energy security.

With energy prices in Delaware reaching all-time highs, the decision comes at a critical moment for Delaware's energy supply. Since Delaware consumes 70 times more energy than it produces and generates less energy than almost any other state. It overwhelmingly buys and imports its energy supply from the regional grid. The supply strain is further exacerbated by the Strait of Hormuz Crisis and the ongoing conflict in Iran, which have driven oil and natural gas prices sharply higher. Delaware's regional grid operator, PJM, has warned that available electricity supply may fall short of peak demand as early as this summer.

Wednesday's court victory reinforces the State's parallel efforts to protect the US Wind project, which AG Jennings has been actively supporting against federal attempts to stall or shut it down. US Wind's offshore wind turbine project would add 1.7 gigawatts of clean, domestically produced energy into that grid. Independent estimates suggest the project could have saved Delaware ratepayers over $43 million in a single month during last January's cold snap, and would lower electricity bills by hundreds of millions of dollars over the life of the project. It is one of the few large-scale generation projects ready to add meaningful supply on a relevant timeline. The Sussex County substation is an indispensable component of the US Wind project's ability to deliver relief to Delawareans, enabling the power cables from offshore to connect with the power grid. Together, these efforts reflect the State's commitment to ensuring that Delaware's energy future is not derailed - whether by local permit denials or federal policy reversals.

When complete, the US Wind project is projected to lower electricity costs for Delaware ratepayers by hundreds of millions of dollars over the life of the project, provide $3.75 million per year in free renewable energy credits, invest more than $400 million in upgrades to the regional transmission grid, and contribute $40 million to coastal resilience, workforce development, and community benefit funds. IBEW Local 126 - the Sussex County union representing local electricians - has supported the project, noting the jobs it will create for skilled tradespeople in the county.