Dominion Energy has confirmed significant progress on its Coastal Virginia Offshore Wind project, which is poised to become the largest offshore wind farm in the United States upon completion. Currently, this massive 176turbine, 2.6gigawatt (GW) project is approximately 66% complete, with plans to deliver electricity to customers by early 2026.
Financial Overview and Investment Plans
In a recent earnings call, Dominion disclosed a fiveyear capital investment plan amounting to $50 billion, which is set to extend through 2029. The firm expects to incur an additional cost of $690 million due to government tariffs on the offshore wind project.
- Total project cost: $11.2 billion
- Projected increase in electricity cost: $84 per megawatthour (MWh)
- Completion timeline: Full completion expected by late 2026; turbine installations may extend into early 2027
Partnership and Project Details
The Coastal Virginia Offshore Wind project is a joint venture between Dominion Energy and Stonepeak, an infrastructure investment firm that acquired its stake in early 2024. Dominion’s CEO, Robert Blue, assured stakeholders of commitment from both local and federal government levels to support this landmark renewable energy initiative.
Impact on Energy Supply
Once operational, this offshore wind project will play a vital role in supplying energy to significant sectors, including technology and defense. Blue emphasized its importance for upgrades to key infrastructure, particularly at the Oceana Naval Air Station.
Data Center Capacity Growth
In addition to the offshore wind project, the demand for electric service in data centers in Virginia continues to surge. Dominion reports a 17% increase in contracted capacity this year, amounting to an additional 7 GW. This growing demand indicates a robust trend among Virginia’s data centers, which have seen guaranteed payment agreements increase.
- Total delivery point requests from data centers in 2023: 17 GW
- Overall requests since 2020: Over 58 GW
- Current electric service capacity: 9.8 GW
Strategic Resource Management
Dominion Energy adopts an “all of the above” resource strategy as part of its commitment to comprehensive energy solutions. This plan includes a blend of renewable resources, transmission enhancements, and thermal power projects. Key milestones include proposals for solar and energy storage projects, alongside a significant gasfired peaker plant.
Nuclear Energy Considerations
On the nuclear front, Dominion has adjusted its timeline for potential small modular reactors (SMRs). Despite Virginia’s supportive policies towards nuclear energy, Blue advised a prudent approach to new nuclear investments to mitigate risks related to cost overruns.
As Dominion Energy progresses with its investments and project developments, the company remains focused on serving its 3.6 million electric customers in Virginia and the Carolinas, while continuing to innovate in energy production and infrastructure development.