Dominion Energy's Coastal Virginia Offshore Wind (CVOW) project remains on track to begin powering 660,000 homes by 2026, despite challenges, including a 9% cost increase and opposition from former President Donald Trump to wind energy development.

The 2.6-gigawatt offshore wind project, based in Richmond, Virginia, saw its construction costs rise from $9.8 billion to $10.7 billion due to increased onshore electrical connection costs and grid upgrades mandated by regional operator PJM. As a result, customers will face an average increase of 43 cents per month on their bills.

Despite Trump's opposition to offshore wind, the CVOW project remains unaffected by his recent executive order freezing new offshore wind leases in federal waters, as it completed the federal approval process under the Biden administration. However, the order may impact Hampton Roads’ bid to become a hub for the offshore wind supply chain, with significant investments like the Port of Virginia’s $233 million upgrade and a new $681 million plant by LS GreenLink USA in Chesapeake, which is currently moving forward.

As of March, the CVOW project was halfway finished, with 78 of 176 turbine foundations installed, and the first offshore substation operational. Dominion Energy is confident the project will meet its 2026 target, delivering significant environmental and economic benefits to Virginia, including a $3 billion saving for customers over the first decade of operation.

The project is integral to Virginia’s clean energy transition under the Virginia Clean Economy Act, which mandates 100% renewable electricity by 2045. Despite the uncertainty caused by potential shifts in federal policy, stakeholders remain hopeful about the long-term viability of offshore wind in the region.

Source: virginiabusiness.com