Dominion Energy’s Coastal Virginia Offshore Wind Project Progress Update

Dominion Energy recently announced that the Coastal Virginia Offshore Wind (CVOW) project, a 2.6GW offshore wind farm, is now halfway complete and remains on track for completion by the end of 2026.

The CVOW project has been a significant contributor to the American economy, creating 2,000 direct and indirect jobs and generating $2 billion in economic activity.

Construction Milestones

The project has achieved several construction milestones, including the successful installation of the first 16 transition pieces, which play a crucial role in connecting the foundation to the wind turbine towers.

In January, the first of three 4,300-ton offshore substations was delivered to the Portsmouth Marine Terminal in Virginia Beach, marking another key step in the project’s progress.

Major components such as monopiles, transition pieces, and undersea cables continue to be delivered in preparation for installation. Wind turbine tower and blade fabrication are also underway, with nacelle fabrication set to begin soon.

Supplier and Vessel Updates

SiemensGamesa, the project’s wind turbine supplier, is manufacturing the same turbine model for CVOW as the one used in the successful Moray West offshore wind project.

The Charybdis, an American-built wind turbine installation vessel, is now 96% complete and has started sea trials in Brownsville, Texas.

Cost and LCOE Update

While the project’s estimated total costs have increased by approximately 9% to $10.7 billion, primarily due to higher network upgrade costs assigned by PJM and onshore electrical interconnection costs, the project remains within budget for other components.

The unused contingency of $222 million, representing around 5% of remaining project costs, provides a buffer for any unforeseen expenses.

Despite the cost increase, the project’s updated levelized cost of energy (LCOE) of approximately $62 per megawatt-hour remains competitive with other new generation alternatives such as solar, battery, and gas-fired generation.

Overall, the CVOW project continues to make steady progress towards its completion goal, contributing to the growth of offshore wind energy in the United States.