Dominion Energy’s Virginia Beach Wind Farm Sees Cost Increase: What It Means for Customers

 

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Dominion Energy has announced a significant cost increase for its Coastal Virginia Offshore Wind (CVOW) project, the largest offshore wind farm in the United States.

The project’s budget has risen from $9.8 billion to $10.7 billion, marking a nearly 10% increase since its initial estimate in 2021. This surge is primarily attributed to higher costs associated with onshore electrical interconnections and network upgrades required by PJM Interconnection, the regional electric grid operator.

Impact on Customers

The cost escalation will result in a modest increase for residential customers. Under an agreement approved by state regulators, Dominion can pass on about half of these additional expenses to consumers.

Consequently, the average household in Virginia can expect an extra charge of approximately 43 cents per month over the life of the project.

Project Progress and Benefits

Despite these financial adjustments, CVOW remains on track for completion by 2026 and is currently about halfway done with construction.

The wind farm will consist of 176 turbines located about 27 miles off Virginia Beach and is expected to generate enough electricity to power around 660,000 homes.

This initiative is crucial for meeting Virginia’s clean energy goals outlined in state legislation aimed at promoting renewable energy development.

Economic and Environmental Implications

The CVOW project not only supports renewable energy development but also contributes significantly to local economic growth. It is projected to create over 2,000 direct and indirect jobs and stimulate substantial economic activity during its development phase.

However, challenges such as regulatory uncertainty and environmental concerns continue to impact offshore wind projects across the U.S.

In summary, while customers will face slightly higher bills due to increased costs at CVOW, Dominion Energy remains committed to delivering this critical clean energy infrastructure without compromising its completion timeline or broader environmental objectives.

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