Dominion Energy’s Coastal Virginia Offshore Wind Project Progressing On Schedule

Dominion Energy reports that its ambitious offshore wind farm project, known as Coastal Virginia Offshore Wind, is on track and making significant progress. The project, which will total 2.6 gigawatts upon completion in late 2026, is set to become the largest offshore wind farm in the United States.

The offshore work for the wind farm commenced in 2024, and Dominion Energy proudly announces that it has reached the halfway point in terms of installation milestones. The company successfully installed 78 monopole foundations and four offshore substation foundations during the first phase, which concluded in November 2024. Currently, the project has placed the first 16 transition pieces in position, with a total of 176 wind turbines planned for the completed project. Material staging at the Portsmouth Marine Terminal is ongoing, with the next phase of monopole installations scheduled to kick off in the upcoming spring.

Recently, the first three offshore substations, each weighing 4,300 tons, arrived in Virginia in late January. Meanwhile, the fabrication of wind turbine towers and blades is already underway, with nacelle production set to begin later this quarter.

Substations arrived as materials are staged onshore in Virginia (Port of Virginia)

Despite the impressive progress on the installation front, Dominion Energy disclosed a nine percent increase in costs compared to the November 2021 budget submitted to the Virginia State Corporation Commission. The escalation in costs is attributed to higher onshore network upgrade expenses allocated by grid operator PJM, pushing the total budget to $10.7 billion from the initial estimate of $9.8 billion.

However, Dominion reassures stakeholders that the costs are being managed efficiently through robust cost-sharing mechanisms and an unused contingency fund amounting to $222 million. The company had previously sold a 50 percent stake in the project to investors Stonepeak, who will share half of the costs up to $11.3 billion, with a further cost-sharing mechanism beyond that threshold. While the grid-related costs have risen, other project expenses, including offshore elements, have remained within the original budget. Dominion Energy estimates that the project will add 43 cents per month to the average customer’s bill over the project’s lifespan.

As part of its commitment to the project, Dominion Energy is constructing the first U.S. wind turbine installation vessel, named Charybis, at Seatrium’s shipyard in Texas. The vessel, now 96 percent complete, has embarked on sea trials and is poised to undertake installations for Coastal Virginia Offshore Wind as its inaugural project.

By effectively managing the project’s execution, Dominion Energy has navigated potential challenges and kept the development on course. The company collaborated with DEME for the initial installation phase, leveraging DEME’s large installation vessel, Orion.

Looking ahead, Dominion Energy has outlined plans to expand its offshore wind energy footprint. In 2024, the company acquired an adjacent property from Avangrid, which could yield an additional 800 megawatts of power. Moreover, Dominion secured a lease from the Bureau of Ocean Energy Management for a site located 35 nautical miles from the mouth of the Chesapeake Bay in August 2024. This lease area has the capacity to support between 2.1 gigawatts and 4.0 gigawatts of offshore wind energy generation, according to preliminary estimates from BOEM. The development of these additional projects will involve meticulous planning and eventual permitting, which could face delays due to the energy policy established during the previous administration.