Avangrid has officially completed the sale of its Kitty Hawk North offshore wind lease area to Dominion Energy for approximately $160 million, the companies announced on October 24. The lease includes nearly 40,000 acres, with Dominion paying Avangrid around $3,000 per acre along with additional reimbursements for associated development expenses.

The transaction, initially agreed upon in July, allows Avangrid to shift its focus toward other renewable ventures, including the continued development of its Kitty Hawk South project, which remains under Avangrid's ownership. This offshore wind area has the potential to deliver up to 2.4 gigawatts (GW) of clean energy to North Carolina, Virginia, and surrounding areas, with a projected completion timeline extending into 2028.

The newly acquired Kitty Hawk North site will now be known as Coastal Virginia Offshore Wind (CVOW) South, aligning with Dominion's broader CVOW project under construction off Virginia Beach. Once operational, CVOW South is expected to produce up to 800 megawatts (MW) of electricity, contributing to Dominion's goal of 3.4 GW in new offshore wind generation in the coming years.

Both Avangrid and Dominion are increasing their investments in offshore wind energy in the Northeast region. Avangrid was recently selected by Massachusetts to develop the 791 MW New England Wind 1 project, while Dominion acquired another offshore lease in August and laid out its carbon-free generation goals in its 2024 Integrated Resource Plan.