Sussex County Council's December 2024 decision to deny a permit for a critical offshore wind substation has sparked legislative action in Delaware. Senate Bill 159, now pending in the General Assembly, would require the permitting of electric substations for renewable energy projects exceeding 250 megawatts in heavy industrial zones. The bill directly addresses the council's rejection of US Wind's $400 million substation, a key component of its 1,700-MW offshore wind project off Ocean City, Maryland.

The substation, slated for construction near a decommissioned coal plant in Indian River, would enhance grid reliability and reduce electricity prices by increasing supply on the PJM Interconnection system. PJM forecasts annual peak demand growth of 2% in summer and 3.2% in winter through 2045, underscoring the need for expanded capacity. Despite Sussex County's Planning & Zoning Commission recommending approval, the council cited lack of local benefits as justification for denial—a move critics argue ignores broader state and regional advantages.

US Wind's project, already federally approved and state-permitted, hinges on this conditional use permit. The developer has committed to covering all costs, with no taxpayer burden. The project aligns with Delaware's Climate Change Solutions Act, which targets net-zero emissions by 2050. Offshore wind is pivotal to this goal, with 77% of Delawareans supporting its expansion, per independent polls.

Opponents frame SB 159 as an infringement on "home rule," but proponents emphasize the legislature's duty to safeguard statewide welfare. The bill's passage could streamline future renewable projects, leveraging Delaware's strategic position for onshore grid connections from neighboring states. Failure to act risks deterring investment and delaying climate progress, as new federal wind energy areas remain years away.