Virginia regulators approve $10B plan for nation's largest offshore wind farm

Offshore staff

RICHMOND, Va. — Dominion Energy has reached a major milestone in the development of the 2.6-GW Coastal Virginia Offshore Wind (CVOW) project by receiving approval from the Virginia State Corporation Commission for the project to be constructed 27 miles off the coast of Virginia Beach.

CVOW's schedule calls for construction to be complete in 2026, when it can generate enough clean energy to power up to 660,000 homes. The final order from the SCC affirms that CVOW meets all Virginia statutory requirements for rider cost recovery and the issuance of a Certificate of Public Convenience and Necessity for the onshore infrastructure. The order also includes a performance requirement but does not outline the details surrounding that requirement.

CVOW represents a clean energy investment of approximately $9.8 billion, and as the largest project of its kind in the US, CVOW is good for energy diversity, the environment and Virginia's economy.

As a renewable energy resource, offshore wind turbines have no fuel costs, which is especially beneficial considering the recent rise in fuel costs across the country. The project is expected to save Virginia customers more than $3 billion during its first 10 years in operation. However, if these ongoing commodity market pressure trends continue, those savings could total up to nearly $6 billion—almost double the savings.

CVOW could create hundreds of direct and indirect jobs during construction and more than 1,000 jobs during operations, while attracting companies to make investments to make Virginia a hub for offshore wind.

As part of its order, the SCC granted approval for approximately 17 miles of new transmission lines and other onshore infrastructure needed to deliver the clean, renewable energy offshore to homes and businesses across Virginia.

Dominion says CVOW major equipment manufacturing and onshore construction will begin in 2023-2024 and offshore construction and commissioning of CVOW wind turbines will take place in 2024-2026. 

08.08.2022