Delaware’s Energy Crossroads: Rising Demand, Shrinking Reliability
- Dr. David R. Legates
- 3 hours ago
- 5 min read
By Dr. David R. Legates, Ph.D.
CRI Contributor
In a companion explainer, “Understanding ‘the Grid’ that Powers Delaware,” I describe how the electric grid operates as a real- time, just-in-time system in which electricity must be produced and consumed almost instantaneously. That structure frames the challenges now confronting Delaware as electricity demand rises and state generation capacity continues to decline.
PJM Interconnection, the regional grid operator responsible for electricity reliability across Delaware and much of the Mid-Atlantic, has warned that brownouts and blackouts could affect the grid as early as June 1, 2026, because people will be using significantly more electricity than before.
This increase is being driven by the rapid growth of data centers and by people switching their cars, heating, hot water, and cooking from gasoline, natural gas, oil, and propane to electric. At the same time, Delaware has closed major power plants that could reliably generate electricity when needed, including the Indian River Power Plant near Millsboro in early 2025.
Against those warnings, Delaware now faces a growing energy challenge as electricity demand continues to rise. With electricity costs increasing and grid reliability under pressure, the question becomes: what short-term and long-term strategies will allow Delaware to keep the lights on and its economy running?
State Climate Policy and the Push to Electrification
Delaware adopted its Climate Action Plan in 2021 to outline how the state intends to reduce greenhouse gas emissions over time. To turn those goals into enforceable policy, lawmakers later enacted the Delaware Climate Change Solutions Act of 2023, which requires statewide greenhouse gas emissions to be reduced 50% below 2005 levels by Jan. 1, 2030, and to reach net zero by 2050.
As part of the broader effort to meet those targets, state policies have emphasized several strategies, including:
Electric vehicle requirements. Delaware adopted vehicle emissions rules based on the Advanced Clean Cars II program developed by the California Air Resources Board. Under the 2023 regulations, 43% of new cars and trucks delivered for sale in Delaware would have been required to be zero-emission vehicles beginning with model year 2027, rising to 82% by 2032. However, after taking office, Gov. Matt Meyer has said he will not move forward with enforcing the state’s electric vehicle sales mandate, saying residents should retain the freedom to choose what type of vehicle best fits their needs, according to WHYY.
Reducing carbon dioxide and methane emissions. The Climate Change Solutions Act directs state agencies to cut emissions of carbon dioxide, methane and other greenhouse gases across the power, transportation, building and industrial sectors. While the law does not explicitly require an immediate legal ban on fossil fuel use, its long-term goal of net zero emissions by 2050 would require a broad shift away from fossil fuels such as gasoline, diesel, coal, natural gas and propane.
As these policies move forward, pressure on the electric grid is expected to grow. Strain on the system is likely to intensify as Delaware’s population expands, data centers come online across the region, and more vehicles and buildings switch from gas, oil and propane to electric instead.
PJM forecasts a sharp rise in electricity demand by 2030, driven largely by large load additions such as data centers. PJM has also warned that without enough new reliable power generation added in time, the system could face capacity shortfalls, raising the risk of blackouts, brownouts and higher electricity costs.
Long-Term Solutions
The long-term solution is to recognize that carbon dioxide is a life-affirming gas and that sharply restricting the use of fossil fuels will necessarily make energy less available and more expensive. Nuclear power must also be considered as an additional source of energy to strengthen overall energy availability.
Today’s nuclear reactors are not the large, first-generation plants of decades past. Much of the industry’s future now centers on small modular reactors (SMRs). These reactors are designed to be built in factory-produced modules and assembled on site, allowing for shorter construction timelines and lower upfront capital costs than traditional large nuclear plants. SMRs also incorporate newer safety systems and can be scaled in stages to match growing electricity demand, according to an earlier analysis by David T. Stevenson published by the Caesar Rodney Institute.
By contrast, much of Delaware’s recent energy policy has emphasized wind and solar, which do not provide the same level of reliability as nuclear or other firm power sources. Wind and solar both rely on subsidies that increase the overall cost of electricity, with those costs reflected through compliance requirements and utility delivery charges. More importantly, renewable energy sources such as wind and solar are not dispatchable.
Dispatchable energy comes from sources that can be turned on or off, or adjusted on demand, to meet electricity needs. Unlike intermittent wind and solar, dispatchable sources such as natural gas, coal and nuclear can be controlled by grid operators to ensure a stable and reliable power supply.
Legislation Now Before Lawmakers
Two pieces of legislation now before the General Assembly would directly address rising electricity costs and growing reliability concerns. Both deserve serious consideration and support.
Senate Bill 65 would remove Delaware from the Regional Greenhouse Gas Initiative (RGGI), a multistate carbon dioxide trading program for power plants. Ending Delaware’s participation in RGGI would reduce compliance costs that are passed on to consumers, help retain more in-state power generation and strengthen grid reliability. Pennsylvania has decided to leave RGGI, and similar action in Delaware could improve affordability and grid reliability.
House Bill 80 would roll back Delaware’s Renewable Portfolio Standard to 10% and hold it at that level for the next 10 years. The current standard requires utilities to obtain a growing share of their power from renewable sources. Rolling the standard back would help stabilize electric costs while still allowing renewable energy to remain part of the state’s energy mix.
Final Thoughts
Delaware now stands at a critical energy crossroads. Electricity demand is rising because of population growth, new data centers and the shift from fuel-powered systems to electric power. At the same time, reliable local generation has declined, leaving the state more exposed to price volatility and reliability risks.
SMRs offer a potential long-term path toward restoring dependable, around-the-clock power while maintaining grid stability. Unlike large, traditional nuclear plants, SMRs are designed for modular construction, incremental deployment and enhanced safety systems, making them a realistic option as older power plants retire and electricity demand continues to grow.
In the meantime, the most immediate path to protecting affordability and reliability lies with legislative action. Decisions on renewable mandates, carbon programs and access to dispatchable power will determine whether Delaware can meet rising demand without placing an unsustainable burden on families, businesses and the state’s electric grid.
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About the Author: Dr. David R. Legates is a retired Professor at the University of Delaware and currently is the Director of Research and Education at the Cornwall Alliance for the Stewardship of Creation. He also is a contributor for the Caesar Rodney Institute and an Advisory Board Member of A Better Delaware.