Delaware Energy Expert Sees Pathway to Lower Energy Costs Through Independence, Nuclear Power, and Policy Reform

Delaware LIVE | July 28, 2025

Lewes, Delaware: Delaware could dramatically lower electricity costs for families and businesses by becoming an energy-independent state, according to Dave Stevenson, policy director at the Caesar Rodney Institute. Stevenson outlined a path forward during Monday’s “A Better Delaware” webcast, hosted by former Delaware Attorney General M. Jane Brady. Stevenson proposed a comprehensive strategy built around expanding in-state natural gas generation, deploying small modular nuclear reactors (SMRs), and reforming the state’s solar credit program. He argued these changes would restore local control over energy production, reduce dependence on out-of-state power, and protect ratepayers from volatile market pricing and costly carbon tax mandates.

Natural Gas: A Resource Already in Place

“In 2016, Delaware produced 80% of its own electricity,” Stevenson said. “Today, we import 60% of it. That’s a direct result of misguided carbon tax policies that have made even our most efficient power plants uncompetitive.”

Stevenson pointed to the Hay Road and Edgemoor natural gas plants near Wilmington as examples of underused assets. These facilities currently operate at just 25% of capacity but, if fully utilized, could meet all of Delmarva’s 7 million megawatt-hour annual demand.

He urged lawmakers to allow utility companies to once again own and operate power plants—a practice banned in Delaware since the Carper administration forced divestiture of generation assets.

Nuclear: The Next Generation of Clean Energy

The most ambitious pillar of Stevenson’s plan involves deploying two 300-megawatt small modular nuclear reactors in the state—one at the Indian River site in Sussex County and another at Hay Road.

“These SMRs are inherently safe, efficient, and already under construction in other parts of North America,” Stevenson said. “Delaware could become a national model for clean, affordable energy if we act now.”

Stevenson emphasized that new federal rules have streamlined the permitting process, with the first SMR in the U.S. expected to go online by 2029. Delaware’s Nuclear Energy Task Force is currently studying the feasibility of such projects, with a report due by the end of the year. Stevenson has applied to serve on that task force.

Solar: Rethinking a Popular But Costly Program

Stevenson also called for changes to Delaware’s solar energy credit system. Under current law, excess energy produced by residential solar panels is credited at retail rates, a policy he says unfairly shifts costs to non-solar customers.

“Many states have moved to crediting excess solar at the wholesale rate instead,” he explained. “That’s a fairer system and would lower electric bills across the board.”

While noting that solar remains an important part of the energy mix, Stevenson argued that policy should prioritize affordability and system-wide reliability over special interest carve-outs.

A Failing Carbon Tax

A central focus of Stevenson’s critique was the Regional Greenhouse Gas Initiative (RGGI), a carbon credit program he described as ineffective and inflationary.

“The carbon tax is failing,” he said. “States that never adopted RGGI saw the same emissions reductions as those that did, thanks to lower natural gas prices.”

Stevenson noted that the program has generated hundreds of millions of dollars in revenue—much of which remains unspent. He called on the General Assembly to repeal Delaware’s participation in the program, a move supported by legislation that failed to get a hearing this year.

Legal and Legislative Outlook

Brady, who also serves as an attorney for the Caesar Rodney Institute, shared updates on several legal challenges to offshore wind projects and state energy mandates. She emphasized that prolonged litigation, combined with federal reviews of permitting, could delay or derail projects that lack community support.

“We’ve reached a point where ratepayers are subsidizing inefficiency,” Brady said. “What Dave is proposing is a chance to rethink the entire system.”

A Vision for Energy Independence

Together, Stevenson and Brady presented a roadmap for Delaware to reduce energy costs, increase reliability, and reclaim control over its power future. Their proposals include: