On 3 February, Dominion Energy announced that the estimated total costs for the Coastal Virginia Offshore Wind (CVOW) project have increased by nine per cent. In addition, the developer said that the 2.6 GW wind farm is now approximately 50 per cent complete and remains on track for on-time completion at the end of 2026.
The estimated total project costs, including contingency but excluding financing costs, have risen by about nine per cent, from USD 9.8 billion to USD 10.7 billion, marking the first and only increase since the initial budget was submitted to the Virginia State Corporation Commission (SCC) in November 2021, said Dominion.
According to the company, the increase comes as a result of higher network upgrade costs, which are assigned by regional electric grid operator PJM, and higher onshore electrical interconnection costs.
Aside from changes to onshore expenses, aggregate costs for other project elements, including offshore, have remained in line with the original budget, stated the developer.
As a result of the comprehensive stakeholder agreement, 50 per cent of the updated total project costs above USD 10.3 billion are unrecoverable from customers and borne by the project owner, according to the company. As a result, the expected average impact over the life of the offshore wind project on a typical residential customer bill using 1,000 KWh per month is a 43 cent per month increase, said Dominion.
As part of a business review, Dominion Energy completed non-controlling equity financing with Stonepeak, where the company will cover 50 per cent of project costs up to USD 11.3 billion and share additional costs beyond that amount. This means Stonepeak will fund half, or about USD 450 million, of the USD 900 million increase in total project expenses, according to Dominion.
Coastal Virginia Offshore Wind Project Remains on Track
Dominion revealed that the project is now about 50 per cent complete and remains on track for on-time completion at the end of 2026.
The first 16 transition pieces (TPs) have been installed at the CVOW project site, located some 43 kilometres off the coast of Virginia Beach. The TPs are being installed on the 176 monopiles that are manufactured and delivered by EEW SPC.
Delivery of the first of three 4,300-tonne offshore substations to the Portsmouth Marine Terminal in Virginia Beach happened at the end of January.
Fully fabricated monopiles, transition pieces, undersea cable, and other major components continue to be delivered in preparation for on-schedule installation. Wind turbine tower and blade fabrication is now underway, with nacelle fabrication to begin later this quarter.
Charybdis , the American-built, flagged, and crewed wind turbine installation vessel (WTIV), has commenced sea trials in Brownsville, Texas, according to Dominion.
The 2.6 GW CVOW will feature 176 Siemens Gamesa 14 MW wind turbines and will become the biggest US offshore wind farm once in operation.