Energy (Electric Grid)

This Act adds a definition of “utility battery energy storage system” to Chapter 10 of Title 26 of the Delaware Code. Under the definition of “utility battery energy storage system,” battery storage systems that store electricity from the electric grid and discharge the electricity at a later time are not considered generation or a generation unit for electricity when owned and operated by a public electric utility. This Act also authorizes Delmarva Power to own and operate battery energy storage systems after appropriate review and approval by the Delaware Public Service Commission. To mitigate any cost shifts or negative impacts on ratepayers, the Act requires Delmarva Power to make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM markets and utilizing its battery energy storage systems to realize potential savings through distribution-level services.

This Act requires large energy use facilities to produce renewable energy within the state to power their operations to prevent a drain on the electric grid. It provides for a “ramp-up” period requiring that a large energy use facility provide a plan to the Public Service Commission to ramp up their energy production within the state each year so that by the 10th year of operations, the facility is producing 100% of its energy usage through in-state production. This Act also allows the Public Service Commission to regulate electric suppliers insofar as necessary to ensure that large energy use facilities do not negatively affect the reliability of the electric grid.

The Renewable Portfolio Standard (RPS) is the percentage of electricity that utilities must source from renewables. This is presently set at 25% and will increase annually, culminating at 40% in 2035. Delaware does not currently have enough renewable energy to meet the present mandate, let alone future RPS requirements. Renewable energy is also in short supply on the regional power grid. If it is available, consumers are paying additional distribution charges to transmit it to Delaware. If renewable energy is not obtainable, Delaware utilities are paying penalties to the state for failing to achieve the RPS mandate. In each of the last two years, Delmarva Power has spent about $13 million annually in such state mandated compliance fees. All these cost multipliers are being passed along to consumers, making power more expensive for Delaware ratepayers. This bill recognizes the current flawed public energy policy that has resulted in renewable energy demand significantly outpacing supply. This legislation seeks to provide relief to Delawareans by rolling back the Renewable Portfolio Standard to 10% and maintaining the RPS requirement for the next 10 years, providing sufficient time for renewable generation capacity to meet demand. After the 10-year period expires, the RPS percentage will resume scheduled annual increases.

Energy Storage Systems provide benefits to the electric grid, including grid stabilization, managing peak energy demand, and providing backup power during outages. Energy Storage Systems can provide substantial cost savings to residential, commercial, and industrial electricity customers. The construction of Energy Storage Systems will promote economic growth and job creation in Delaware. This resolution directs the Delaware Sustainable Energy Utility (DESEU) to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter, by all electric public utilities in Delaware. The resolution also directs the DESEU to conduct a pilot program and provide guidance and a level of funding, to be determined by the DESEU, to support Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to deploy at least one battery storage pilot project in Delaware to serve their Delaware service territory. The DESEU is to submit a comprehensive report detailing the findings from the battery storage pilot program and the cost-benefit study and analysis of Energy Storage Systems in Delaware on or before June 1, 2026.

Grid-enhancing technologies (GETs) offer efficient tools to increase power grid capacity without the need for new transmission lines. Studies demonstrate that these innovations can double renewable energy integration, create hundreds of thousands of jobs, and significantly expand interzonal transmission capacity. By 2035, GETs and reconductoring could help the U.S. achieve 90% emissions-free electricity. This resolution directs the DNREC State Energy Office (DNREC SEO) and the Delaware Sustainable Energy Utility (DESEU) to conduct a comprehensive cost-benefit analysis of GETs across all electric utilities in Delaware. The study shall assess ratepayer costs, technical feasibility, and implementation plans. DNREC SEO and DESEU are tasked with collaborating with the electric utilities, the Department of Natural Resources and Environmental Control, the Division of the Public Advocate, and other interested stakeholders and must submit a detailed preliminary report of its findings to the Governor and all members of the General Assembly by December 31, 2025, and a final report by July 31, 2026.