Dominion Energy Hits Milestone in Coastal Virginia Offshore Wind Construction With the Installation of the 50th Monopile Foundation

Rhea-AI Summary

Dominion Energy (NYSE: D) has reached a significant milestone in the construction of its Coastal Virginia Offshore Wind (CVOW) project, installing the 50th monopile foundation. The company aims to install 70-100 monopiles by October's end, keeping the project on budget and on schedule for completion in late 2026. CVOW, the largest offshore wind project under construction in the U.S., will consist of 176 turbines generating 2.6 gigawatts, enough to power 660,000 homes. The project is expected to yield $3 billion in fuel savings for customers in its first decade of operation. Over 800 Virginia-based workers are currently engaged in the project, with more than 1,000 local jobs anticipated for ongoing operations and maintenance.

Positive

• Installation of 50th monopile foundation keeps the project on schedule
• CVOW project remains on budget
• Expected to generate $3 billion in fuel savings for customers in first 10 years
• Creating over 800 jobs in Virginia, with 1,000+ local jobs expected for ongoing operations

Negative

• None.

Insights

Renewable Energy Analyst

The installation of the 50th monopile foundation for Dominion Energy's Coastal Virginia Offshore Wind (CVOW) project marks a significant milestone in the U.S. offshore wind industry. With a capacity of 2.6 gigawatts, CVOW is poised to become the largest offshore wind project in the country. This progress demonstrates the viability of regulated offshore wind in the U.S. market.

The project's ability to stay on schedule and on budget is important for investor confidence in the renewable energy sector. The projected $3 billion in fuel savings over 10 years could translate to improved profitability for Dominion Energy and potentially lower energy costs for consumers. This could positively impact the company's financial outlook and stock performance in the long term.

Economic Impact Analyst

The CVOW project is not just an energy milestone; it's a significant economic driver for Virginia. With over 800 Virginia-based workers already engaged and projections of 1,000+ local jobs for ongoing operations, this project is creating substantial employment opportunities. This influx of jobs could lead to increased economic activity in the Hampton Roads region, potentially boosting local businesses and real estate markets.

Investors should note the long-term economic benefits of such large-scale infrastructure projects. The establishment of a robust offshore wind industry in Virginia could attract related businesses, fostering a renewable energy ecosystem that could provide sustained economic growth and diversification for the region. This could have positive implications for Dominion Energy's long-term value proposition and regional economic stability.

Environmental Policy Analyst

Dominion Energy's progress on the CVOW project aligns with the broader shift towards clean energy in the U.S. The project's capacity to power up to 660,000 homes with renewable energy represents a significant step towards reducing carbon emissions. This aligns with Dominion Energy's commitment to achieving Net Zero emissions by 2050, positioning the company favorably in an increasingly environmentally conscious market.

Investors should consider the regulatory landscape supporting offshore wind development. As states and the federal government push for increased renewable energy adoption, companies like Dominion Energy that are ahead in offshore wind development may benefit from favorable policies and incentives. This could translate to competitive advantages and potential market share growth in the evolving energy sector, potentially enhancing long-term shareholder value.

• Dominion Energy remains on target to install between 70-100 monopile foundations by end of October
• Coastal Virginia Offshore Wind remains on budget and on schedule to complete construction in late 2026

RICHMOND, Va., Aug. 12, 2024 /PRNewswire/ -- Dominion Energy announced today the 50th monopile foundation for the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) was installed 33 miles off the coast of Virginia Beach, keeping the project on schedule to hit the company's target of 70-100 monopiles set into the sea floor during the first of two installation seasons that run through the end of October.

CVOW, the largest offshore wind project under construction in the United States, will consist of 176 turbines that will generate enough clean, renewable energy to power up to 660,000 homes and is expected to generate fuel savings of $3 billion for customers during the first 10 years of operation. Construction remains on schedule to be complete in late 2026.

"Our on-time, on-budget Coastal Virginia Offshore Wind project proves that regulated offshore wind works in the United States," said Robert M. Blue, Dominion Energy's chair, president and chief executive officer. "Offshore wind is critical to our all-of-the-above approach to provide our customers with affordable, reliable and increasingly clean energy."

The monopile foundations, which are being staged at Portsmouth Marine Terminal, are single vertical, steel cylinders manufactured by global leader EEW SPC and are being installed into the sea floor to support the wind turbine generators. Consistent with the project construction schedule, Dominion Energy will continue to install monopiles through the fall of 2024 and resume installations in May 2025. 

Offshore wind's economic development and jobs benefits are transformative for Hampton Roads and the Commonwealth. More than 800 Virginia-based workers – nearly 670 in the Hampton Roads region – have been engaged on the CVOW project or with other businesses supporting CVOW. More than 1,000 local jobs will be needed to support ongoing operations and maintenance of this facility after the project begins commercial operation.

About Dominion Energy

More than 4.5 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to providing reliable, affordable, and increasingly clean energy every day and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.

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SOURCE Dominion Energy

FAQ

How many monopile foundations has Dominion Energy installed for the Coastal Virginia Offshore Wind project?

Dominion Energy has installed 50 monopile foundations for the Coastal Virginia Offshore Wind project as of August 12, 2024.

What is the target number of monopile installations for Dominion Energy's CVOW project by October 2024?

Dominion Energy aims to install between 70-100 monopile foundations by the end of October 2024.

When is the Coastal Virginia Offshore Wind project expected to be completed?

The Coastal Virginia Offshore Wind project is scheduled to be completed in late 2026.

How many homes will the Coastal Virginia Offshore Wind project power?

The Coastal Virginia Offshore Wind project is expected to generate enough clean, renewable energy to power up to 660,000 homes.