Delaware court clears path for US Wind substation after Sussex, Fenwick lawsuit challenge

March 27, 2026

Sean Curtis, WBOC

SUSSEX CO., Del. - A major legal battle over offshore wind in Sussex County has taken a decisive turn in the Delaware Court of Chancery this week.

The Court of Chancery has ruled in favor of the state, clearing the way for a controversial electrical substation tied to the US Wind project and rejecting a lawsuit filed by Sussex County and the Town of Fenwick Island, according to the Delaware Department of Justice.

That lawsuit challenged Senate Bill 159, a law passed in late 2025 after Sussex County Council voted 4-1 in late 2024 to deny a permit for the substation near the Indian River Power Plant. 

The proposed facility would serve as the landing point for power cables from an offshore wind farm planned off the Maryland coast, ultimately connecting that energy to the regional grid.

State lawmakers stepped in after the county’s denial, passing legislation designed to prevent local governments from blocking certain large-scale energy infrastructure projects tied to renewable power. Sussex County and Fenwick Island argued that move overstepped state authority, claiming it violated local zoning control and other constitutional principles.

But in its latest ruling, handed down on Wednesday, March 25, the Court of Chancery sided with the state and affirmed that zoning authority ultimately rests with the General Assembly, which can override local decisions when it determines a broader statewide interest is at stake.

State leaders argue the project is critical to addressing what they describe as a growing energy supply and reliability challenge in Delaware. Supporters of the project argue that added supply could lower electricity costs by hundreds of millions of dollars over time, while also investing in grid upgrades and workforce development.

"We need to get politics out of our energy policy and focus on what actually lowers costs for Delaware families," said Governor Matt Meyer. “Delaware needs more energy, and wind is one of our natural advantages. At a time when the federal government is driving energy costs even higher, we have a responsibility to do everything we can to deliver clean, affordable energy here at home. I'm thankful to Attorney General Jennings and her team for their hard work and I look forward to this project moving forward.”

Opponents, including Sussex County leaders and Fenwick Island officials, have raised concerns about local control, environmental impacts, and the precedent set by the state overriding county zoning decisions.

The substation itself is a key piece of the larger US Wind project off the coast of Sussex County and Worcester County, which aims to deliver roughly 1.7 gigawatts of offshore wind energy into the regional grid. With the court’s decision now in place, the ruling removes a major legal obstacle for the substation project and the broader offshore wind effort in Delaware.

US Wind remains embroiled in several major federal lawsuits in both Delaware and Maryland, however. Currently, development appears to have all but halted as the offshore wind company battles both local opponents and the Trump Administration in court. 

The Delaware DOJ tells WBOC that Wednesday's ruling can also be appealed to the Delaware Supreme Court.