US Wind slams 'anti-business' move to reject offshore wind substation
Project vows to fight Sussex County's decision that could set 'dangerous precedent' for local sector opposition looking to stop development
Delaware’s Sussex County has rejected US Wind’s application to build a substation for its 2GW project, highlighting local opposition risk even for US offshore wind projects with federal approvals and state offtake in hand.
In a 4-1 vote Tuesday, the Sussex County Council rejected the project’s application to build a substation on a 140-acre (57-ha) parcel adjacent to the coal-fired Indian River Power Plant to feed its electricity into the MidAtlantic state’s grid.
The project has some 1GW offtake contracted to neighbouring Maryland but will feed the power through Delaware into regional transmission operator PJM’s grid serving the greater MidAtlantic region.
“They all flow to the benefit of the state of Maryland and the residents of the state of Maryland,” he added.
US Wind, majority-owned by Italy’s Renexia, has pledged $200m to upgrade and strengthen Delaware's grid. It will also provide $116m in renewable energy credits (RECs) and community development and annual rent payments to the First State. One REC is equivalent to a megawatt-hour of renewable power.
“This was a terrible anti-business decision by the County,” said Jeff Grybowski, US Wind CEO. “There was no basis at all for denying our application – an application that the County’s Planning and Zoning Commission already unanimously recommended.”
“The region needs more electricity to grow the economy and support new jobs. Our new substation will deliver large amounts of clean power directly into the electric grid in Sussex County,” Grybowski added, promising to take the county to court.
US Wind has two separate offshore wind REC (OREC) contracts with Maryland, which legally mandates 8.5GW of offshore wind capacity by 2031.
Delaware was an early mover in offshore wind but after the demise of Bluewater Wind in 2008, it stepped back from the sector and only now has a goal of 1.2GW by 2035.
'Dangerous precedent'
Industry supporters and environmentalists slammed the county for its decision.
“By rejecting the permit, Sussex County leaders set a dangerous precedent that could hamper future infrastructure projects that will doubtlessly be required to meet rising energy demand in our region and to help bring more clean, affordable energy online,” said Peggy Schultz, founder and facilitator of People for Offshore Wind Energy Resources (POWER).
David Stevenson, director of Delaware-based right-wing advocacy group Caesar Rodney Institute's Centre for Energy & Environment, backed the county's surprise rejection but denied allegations of his group's involvement.
Stevenson is also founder of national offshore wind opposition group American Coalition for Ocean Protection.
Dustyn Thompson, chapter director for the Sierra Club Delaware Chapter, said: “It is unfortunate that the Council saw fit to overstep its decision-making power and try to decide energy policy for the state, instead of focusing on land use policy for the county.”
US Wind maintained that its project plans remain unchanged despite the setback.
“We know that the law is on our side and are confident that today’s decision will not stand,” said Grybowski.
“Our plans to build the region’s most important clean energy project are unchanged.”
(Copyright)