Dominion Energy advances CVOW offshore installation and completes port upgrades
Virginia utility's 2.6GW project remains on track and (nearly) on budget with substation installed and Skanska's harbour improvements finished
As the US offshore wind fleet founders on Donald Trump’s hostility, Dominion Energy continues advancing its 2.6GW Coastal Virginia Offshore Wind (CVOW) array, with its first substation installed and upgrades to its staging port completed.
This is the latest advance in the project’s offshore construction in which Dutch marine contractor Deme has installed 78 for what will eventually be 176 Siemens Gamesa 14MW turbines.
The 72-acre (29 ha) PMT is part of the publicly owned, multi-facility Port of Virginia and managed by the Virginia Port Authority.
The $233m upgrades that started in 2022 include three new heavy lift berths and surface strengthening to support heavy lift cranes to load and unload the multi-tonne components.
“This project strengthens vital port infrastructure while advancing sustainable energy production and benefiting local communities through job creation,” said Brook Brookshire, senior vice president of operations for Skanska USA Civil.
It remains on time and until recently, on budget before posting a 9% cost spike due to grid interconnection fees charged by regional transmission operator PJM that raised its price tag to $10.7bn.
As Virginia's monopoly power provider in a tightly regulated market, Dominion is developing CVOW as a conventional power plant, complete with guaranteed rates of return that enabled it to enter into supplier contracts for most components in 2021, before the onset of inflation.
While the project continues to make impressive strides, like many other US offshore wind projects, it faces court challenges to its federal approvals.
These challenges are fueled by the Trump administration’s multipronged strategy to derail the 19GW of approved offshore wind capacity.
Trump’s executive order (EO) issued 20 January bans new offshore wind leasing and permitting, while putting approved projects under review with an eye for termination or amendment.
In the case of litigation, it also empowers the Department of Justice (DoJ) to “request that the court stay the litigation or otherwise delay further litigation, or seek other appropriate relief consistent with this order.”
Dominion CEO Bob Blue remained confident the project will proceed to commercial operations by late 2026.
On a recent earnings call, he noted that Dominion’s service territory includes the world’s largest concentration of data centres in Northern Virginia where AI-driven power demand is set to skyrocket.
CVOW “helps promote American energy dominance” and is “critical to continuing US superiority in AI and technology.”
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