Stevenson: Governor should end failed energy plan

PHOTO COURTESY OF DAVID T. STEVENSON

The results from 2024 federal and state reports are in, and they are not pretty.”

David T. Stevenson is the former director for energy and environment at the Caesar Rodney Institute.

Two decades ago, Delaware joined other states in deciding to interfere in energy markets, passing laws mandating the ever-increasing use of wind and solar, setting energy efficiency goals and creating a tax on carbon dioxide emissions. The results from 2024 federal and state reports are in, and they are not pretty:

• Wind and solar were to meet 24% of electricity demand. Federal reports show that state generation of solar only met 3.3% of demand, about the same as our 13-state regional grid. In-state wind power was essentially zero and only met 3.5% of regional electric demand. The federal government is ending massive wind and solar subsidies, which will limit future wind and solar construction. State-supported offshore wind will not likely survive federal opposition.
• Fortunately, a cost cap measure has frozen the wind mandate, but a required alternate compliance payment means that costs will continue to be added to electric bills.
• Energy efficiency goals were to lower emissions by 20% by 2025. State evaluation reports from 2016-20 totaled only a 1% reduction, with no reports filed since 2020.
• A private nonprofit funded by the carbon tax, the Sustainable Energy Utility, was created to fund emission-saving projects. Its annual reports from 2014-24 show a total emission reduction of 0.5%, after spending $184 million of electric customer premiums. Meanwhile, the carbon tax cut in-state electric generation in half.
• An electric vehicle mandate has not gone into effect and is now dead, based on steps taken by the federal government.
• Proposed building code changes to support a transition away from natural gas and propane to electricity will raise utility bills and construction costs in the face of a housing affordability crisis.

Despite the failures of the state energy plan, carbon dioxide emissions have fallen because of free market innovations. Improved natural gas-drilling techniques provided much-lower-cost, natural gas that replaced higher-emission coal and oil. Regional grid reports show that the conversion contributed about 90% of the emission reductions. In 2005, coal and oil electric generation provided 58% of our regional power, while natural gas generation provided just 5%. By 2024, low-cost natural gas supplied 44%, as coal and oil fell to 15%.

Another free market solution is improving gasoline miles/gallon in motor vehicles. My earlier report shows that hybrid gas/battery vehicles are getting 50%-70% better miles/gallon. There are no government subsidies or mandates. A state report — used to support recent legislation to add a registration fee to hybrids and electric vehicles, to make up for lower gas tax revenues — shows five times as many hybrid vehicles on the road as there are electric vehicles.

Delmarva Power electric bills detail how the energy plan is adding about 10% to electric bills. Hidden costs from the carbon tax and the need to make other investments to back up unreliable wind and solar may add another 10% to bills. An updated energy plan that continues these same failed policies is being reviewed by the Governor’s Energy Advisory Council. The council should reject the plan and advise the governor to let markets determine best practices.

Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.