Dominion Energy has announced that its 2.6GW Coastal Virginia Offshore Wind (CVOW) project is 50% complete and on track for completion by the end of 2026.
The project will boost the local economy, creating 2,000 jobs and $2bn in economic activity.
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The project achieved some construction milestones including the installation of 16 transition pieces, essential for connecting the foundation to the tower for each of the 176 wind turbines.
The first of three 4,300t offshore substations was delivered to the Portsmouth Marine Terminal in Virginia Beach in January 2025.
Key components such as monopiles, transition pieces and undersea cables are being prepared for installation.
Wind turbine tower and blade fabrication is underway, with nacelle fabrication set to start in spring 2025.
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By GlobalDataWind turbine supplier Siemens Gamesa is providing the same model used in the Moray West offshore project.
American-built wind turbine installation vessel Charybdis is 96% complete and undergoing sea trials in Brownsville, Texas.
Blue Ocean Energy Marine, part of Dominion Energy, was set up to build and run Charybdis, helping with the development, installation and maintenance of offshore wind projects in the US.
The CVOW project’s estimated total costs have risen 9%, from $9.8bn to $10.7bn, marking the first increase since the original project budget was submitted in November 2021.
The cost increase is due to higher network upgrade costs assigned by regional electric grid operator PJM and increased onshore electrical interconnection costs.
Despite changes in onshore costs, the total costs of the project – including offshore – remain consistent with the original budget.
Following a stakeholder settlement approved by the Virginia State Corporation Commission in December 2022, 50% of costs above $10.3bn are unrecoverable from customers.
Due to the total project cost update, the expected average impact over the life of the project on the bill of a residential customer using 1,000 kWh per month would be an increase of 43 cents per month.
Dominion Energy has also completed a non-controlling equity financing deal with Stonepeak.
Stonepeak has committed to covering 50% of project expenses up to $11.3bn and will share costs exceeding this amount. Stonepeak will be funding $450m of the total project cost increase of $900m.
Stonepeak and Dominion Energy have agreed to evenly split the burden of any additional project expenses not recovered from customers, as outlined in the December 2022 order.
Consequently, Dominion Energy expects a $100m charge in its results from the fourth quarter of 2024, which will be excluded from operating earnings.
