While a number of US offshore wind projects are now seeking to alleviate financial pressures, Dominion Energy’s 2.6 GW Coastal Virginia Offshore Wind (CVOW) commercial project remains on budget and on schedule, according to the company, which also plans to bring in a minority shareholder to “de-risk” the project.
On 5 September, Dominion announced that it executed agreements to sell its three natural gas distribution companies to Enbridge as part of its business review which Dominion is undertaking to reposition the company “to create maximum long-term value for shareholders, employees, customers, and other stakeholders” amid a significant electricity demand growth.
Speaking about the offshore wind project, the company’s CEO, Robert M. Blue, said the 2.6 GW CVOW was on budget and on schedule.
“[The] thoughtful approach taken by Virginia legislators and regulators to develop a framework for our regulated offshore wind project is delivering exceptional results for customers and local economies. It enabled us to take a differentiated approach to project development, securing agreements early with offshore wind suppliers for material and services while giving them confidence in our project’s completion. This allows our vendors to maintain focus on delivering their equipment and services on time” .
Blue also said the offshore wind farm was estimated to deliver electricity at a levelised cost “that competes very favourably with the nation’s unregulated offshore wind projects while creating hundreds of jobs and millions of dollars of local economic benefit”.
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In its press release from 5 September, Dominion Energy also revealed plans to bring in a noncontrolling equity financing partner on the 2.6 GW offshore wind project , which would de-risk the project and is part of additional capital sourcing, on top of the sale of its natural gas distribution companies, within the company’s ongoing business review.
Located 27 miles off the coast of Virginia Beach, CVOW will comprise 176 Siemens Gamesa 14 MW wind turbines with the installation scheduled to begin in 2024.
Once fully constructed in 2026, the 2.6 GW Coastal Virginia Offshore Wind project will be able to generate enough electricity to power up to 660,000 households.