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Delaware (US-DE)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~441 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources

1. Overview​

Delaware operates a deregulated electricity market where residents can choose third-party suppliers while utilities like Delmarva Power manage delivery infrastructure 1. As of March 2026, the state is a net energy importer, bringing in approximately 60% of its electricity from the PJM Interconnection grid to meet demand 12. In-state generation is dominated by natural gas, which accounts for 80–87% of local production, while renewable sources comprise only about 4.4% of the state's total electricity generation 34.

The state's grid carbon intensity is high relative to the rest of the U.S., with reported rates ranging from approximately 441 gCO2eq/kWh to 510 gCO2eq/kWh (1,126 lbs/MWh) for the 2024/2025 period 56. Under the Delaware Climate Change Solutions Act of 2023, the state is mandated to achieve a 50% reduction in greenhouse gas emissions from 2005 levels by 2030 and reach net-zero emissions by 2050 6. Supporting these goals, the state's Renewable Portfolio Standard (RPS) requires 40% of electricity sales to come from renewable sources by 2035, with a specific carve-out of 10% for solar energy 37.

⚠️ Uncertainty on Data Discrepancies: There is a notable discrepancy in reported grid carbon intensity figures between sources (441 gCO2eq/kWh vs. 510 gCO2eq/kWh) and import reliance (60% vs. implied "70 times more energy consumed than produced"). Specific verification of the methodology behind these figures is recommended.

2. Market Structure​

Delaware utilizes a deregulated electricity market that allows eligible residents and businesses to choose their energy supplier through a program known as "Electric Choice" 8. The market is characterized by unbundled services, where the "supply" (energy generation) is separated from "delivery" (transmission and distribution). While customers may shop for competitive supply rates—often offering fixed-rate plans or 100% renewable energy—the local utility retains responsibility for delivery and maintains the physical infrastructure 8.

The state's utility landscape comprises three distinct ownership models:

  • Investor-Owned Utilities (IOUs): Regulated by the Delaware Public Service Commission (PSC), these for-profit entities include Delmarva Power, the primary electric and gas utility in the state 9.
  • Municipal Utilities: Nine municipalities operate their own utilities as part of the Delaware Municipal Electric Corporation (DEMEC), a joint action agency. Member cities include Clayton, Dover, Lewes, Middletown, Milford, Newark, New Castle, Seaford, and Smyrna 10.
  • Electric Cooperatives: The Delaware Electric Cooperative (DEC) serves over 110,000 member-owners in Kent and Sussex Counties as a not-for-profit entity 11.

For the wholesale market, Delaware is part of the PJM Interconnection (PJM), a Regional Transmission Organization (RTO) that coordinates the movement of wholesale electricity across 13 states and the District of Columbia 12. PJM acts as an independent authority, managing the high-voltage grid, ensuring reliability, and operating the wholesale spot market 13.

⚠️ Current Market Context (March 2026): Customers are facing higher bills driven by rising wholesale power costs and regional demand from data centers. Delmarva Power has recently proposed supply rate increases ranging from 16% to 24%, which are under scrutiny by state lawmakers 8.

3. Clean Energy Policy​

Delaware's clean energy mandates are primarily driven by the Renewable Energy Portfolio Standards Act (REPSA) and the Climate Change Solutions Act of 2023.

Renewable Portfolio Standard (RPS) Established under REPSA (26 Del. C. § 351–364) and most recently amended by Senate Bill 33 in 2021, Delaware requires electricity suppliers to source an increasing percentage of retail sales from renewable energy 6. The standard mandates that 40% of electricity sales come from renewable sources by 2035 6. Key interim targets include:

  • 2025: 25% (with a 3.5% solar carve-out)
  • 2030: 28% (with a 5% solar carve-out)
  • 2035: 40% (with a 10% solar carve-out) 10

Utilities comply by accumulating Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs) 6. Failure to meet targets results in Alternative Compliance Payments (ACPs), currently set at $25/MWh for general renewables and $150/MWh for solar 6. Large industrial customers with a peak demand exceeding 1,500 kilowatts are generally exempt from RPS-related charges 6.

⚠️ Legislative Status: As of March 2025, House Bill 80 was introduced to roll back the RPS requirement to 10% for a decade, citing high compliance costs. However, the 40% by 2035 target remains the current legal standard 14.

Climate Change and Net-Zero Goals The Climate Change Solutions Act of 2023 (House Bill 99) legally mandates a 50% reduction in greenhouse gas emissions by 2030 (from a 2005 baseline) and net-zero emissions by 2050 6. The electricity sector has already seen emissions decline by over 50% since 2005 6.

To support these goals, the state has authorized the procurement of 800 to 1,200 megawatts of offshore wind power via the 2024 Delaware Energy Solutions Act 6. Additionally, House Bill 11 (2023) requires new commercial buildings over 50,000 square feet to be "solar-ready" 6.

4. Utility Landscape​

Delaware's electric utility landscape is characterized by a mix of investor-owned utilities (IOUs), cooperative, and municipal entities. The market is largely dominated by two primary distributors which account for approximately 85% of the state's total electric load [3].

Investor-Owned Utilities (IOUs)​

  • Delmarva Power: A subsidiary of Exelon, Delmarva is the largest utility in the state, serving roughly 312,000 customers. Its service territory covers all of New Castle County and the most densely populated areas of Kent and Sussex Counties [3].
  • Chesapeake Utilities: Another primary IOU serving the state [1].

Delaware operates under a retail choice model, allowing customers of IOUs to select third-party electric suppliers for energy supply while the IOU retains responsibility for delivery, maintenance, and grid infrastructure [1].

Cooperatives​

  • Delaware Electric Cooperative (DEC): A member-owned, non-profit utility serving more than 112,000 members (approximately 300,000 people). DEC primarily serves rural and suburban areas in Kent and Sussex Counties. As a cooperative, margins (profits) are returned to members as capital credits [2].

Municipal Utilities​

Nine municipal utilities are represented by the Delaware Municipal Electric Corporation (DEMEC), a joint-action agency that purchases and generates wholesale electricity for its member communities [2].

  • Member Towns: Clayton, Dover, Lewes, Middletown, Milford, Newark, New Castle, Seaford, and Smyrna [2].
  • Scope: Combined, these municipal utilities serve about 77,400 meters [3].

Water Utilities​

The state also features several regulated investor-owned water utilities, including Artesian Water Company, Tidewater Utilities, and Veolia Water Delaware [1].

5. SSS-Eligible Resources​

No specific SSS-eligible resources identified. See section notes.

⚠️ Note: There is a discrepancy in the search results regarding installed capacity figures (113.5 MW vs. >175 MW).

  • Coal Phase-Out: Coal generation dropped from 46% of in-state generation in 2010 to 3% in 2024. The last legacy coal unit at the Indian River Power Plant is scheduled for retirement in Spring 2025 [Delaware.gov +1].
  • Renewable Portfolio Standards (REPSA): The state mandates utilities source 24% of electricity from renewables in 2024, scaling to 40% (including a 10% solar carve-out) by 2035 [The Conveners Network +3].
  • Incentive Programs: The Green Energy Program has funded over 6,000 renewable projects since 1999, while the Low-to-Moderate Income Solar program offers cost-free installations [DNREC (.gov) +3].

6. EAC/REC Registry Infrastructure​

In Delaware, the tracking and management of Energy Attribute Certificates (EACs)—specifically Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs)—relies on a two-step process involving state certification and a regional tracking system [1].

State Certification Before generating credits, all renewable energy systems must be certified by the Delaware Public Service Commission (PSC) as an "Eligible Energy Resource." This process verifies system eligibility and issues a unique Delaware State Certification Number. Applications are typically submitted via the DelaFile electronic system, though homeowners often submit paper applications or rely on solar installers to complete this step [1].

PJM-GATS Registry Once state-certified, systems must be registered in the Generation Attribute Tracking System (GATS), the official registry for the PJM region which includes Delaware [2]. Managed by PJM Environmental Information Services (EIS), this platform is used to "mint," track, and retire certificates to prevent double counting [3]. System owners or their agents enter monthly production data into GATS to generate one credit for every 1 MWh of electricity produced [1]. Utilities and electricity suppliers use GATS to "retire" credits to demonstrate compliance with the state's Renewable Portfolio Standard (RPS) [1][2].

Credit Lifespan and Markets RECs and SRECs in Delaware are generally valid for the compliance year in which they were produced and the following two compliance years, totaling a 3-year lifespan [1][3]. Solar owners can sell credits on the "spot market" or through long-term procurement programs such as the SREC Delaware auction, which offers fixed-price contracts for 20 years [1].

7. Grid Emissions​

Grid Carbon Intensity: 441 gCO₂eq/kWh (annual average)

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-09
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Find Energy ↩ ↩2

  2. CleanChoice Energy ↩

  3. U.S. Energy Information Administration (EIA) ↩ ↩2

  4. America’s Health Rankings ↩

  5. Climatiq ↩

  6. DNREC (.gov) ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11

  7. SEIA ↩

  8. Delaware Public Service Commission (PSC) (.gov) ↩ ↩2 ↩3

  9. Delaware State Chamber of Commerce ↩

  10. City of Newark DE (.gov) ↩ ↩2

  11. Delaware Electric Coop ↩

  12. The George Washington University ↩

  13. Spotlight Delaware ↩

  14. Delaware General Assembly (.gov) ↩