Time to Review Delaware Renewable Energy Program

Caesar Rodney Institute

DIRECTOR - David T. Stevenson, Director

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Delaware electricity consumers will pay an extra $38 million this year because of state mandates which force the use of expensive solar, fuel cell, and wind power. This cost could rise to $300 million by 2025 adding $275 a year to residential electric bills. A bill in the Delaware House of Representatives, HB247, sponsored by Representative Greg Lavelle would freeze the use of these alternative energy sources and allow time for a policy review. Evidence is mounting theses alternative sources do not provide substantial environmental benefits and the extra cost falls mainly on the poor and middle class.

Germany’s Economic Minister, Phillipp Roesler, has said the country’s generous subsidies solar are a threat to the economy. Germany has spent $130 billion, $10 billion last year alone, on subsidies but solar energy only supplies 0.3% of the country’s energy needs. Short days and cloudy weather have resulted in almost no solar power production in the last month. It is estimated this huge effort will delay the impact of global warming by only a single day by the end of the century using the United Nations climate studies.

In view of developments around the world a review of energy policy seems timely:

· Germany, with nearly 40% of the world’s solar installations, is mulling legislation that would rapidly end government subsidies

· Italy will stop accepting new solar installations into its subsidy program later this year

· Spain has suspended renewable energy subsidies

· The Netherlands ended renewable energy subsidies last year

· The UK is considering major reductions in subsidies

· Ohio is considering repealing its Renewable Portfolio Standard (RPS)

· Maine’s Governor is recommending major reductions in its RPS

A recent CRI article, “How to Rebuild Delaware’s Electric Generation Capacity”, pointed out, for the same investment, building new natural gas generating plants would reduce air pollution ten times more than solar power. The electricity produced by the natural gas generating facilities would cost about a quarter as much as solar and would add 3500 more jobs to the Delaware economy.

Delaware, which requires 3.5 % of electricity be supplied by solar by 2025, has the highest percentage requirement for solar energy for states east of the Mississippi. Only twelve of those twenty-eight jurisdictions have solar carve outs in their RPS programs. Eight of those twelve require 1% or less. Delaware is out of step. Onshore wind power only costs about a third as much as solar power. Delaware should end its forced use of wind, fuel cell, and solar power. At the very least, the solar carve out should be repealed.