Dominion Energy Secures 176,505-acre Lease Area from the Bureau of Ocean Energy Management For Potential Regulated Offshore Wind Development

Rhea-AI Summary

Dominion Energy has secured a 176,505-acre lease area off the coast of Virginia Beach for potential offshore wind development. The company submitted a winning bid of $17.7 million, equating to $100 per acre. This acquisition provides Dominion Energy with the option to deploy additional regulated offshore wind generation to meet growing electric demand and support the goals of the Virginia Clean Economy Act.

The new lease area could support between 2.1 and 4.0 gigawatts of offshore wind energy generation. It is located approximately 35 nautical miles from the Chesapeake Bay. This acquisition follows the company's recent purchase of the Kitty Hawk Wind North lease area, now renamed CVOW South, with a potential capacity of 800 MW.

Dominion Energy's focus remains on completing its 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project, which is currently on time and on budget, with expected in-service by the end of 2026.

Positive

• Secured 176,505-acre lease area for potential offshore wind development
• New lease area could support between 2.1 and 4.0 gigawatts of wind energy generation
• Recently acquired CVOW South with potential 800 MW capacity
• CVOW project on time and on budget, expected in-service by end of 2026
• 54 monopiles installed since May 22, 2024, consistent with target of 70-100 for the first installation season

Negative

• Significant investment of $17.7 million for the lease area
• No estimated timeline or cost for development of CVOW South or the new leasehold

• Dominion Energy submits winning bid of $17.7 million for a second lease area off the coast of Virginia Beach; equates to $100 per acre
• Acquisition provides the option to deploy additional regulated offshore wind generation to serve unprecedented electric demand growth using all-of-the-above approach supportive of goals of Virginia Clean Economy Act
• Company's focus remains on completing the 2.6-gigawatt Coastal Virginia Offshore Wind project on time and on budget

RICHMOND, Va., Aug. 14, 2024 /PRNewswire/ -- Virginia Electric and Power Company, a wholly owned subsidiary of Dominion Energy, Inc. (NYSE: D), today secured the rights for a 176,505-acre lease area off the coast of Virginia Beach, adjacent and to the East of where the company's 2.6-gigawatt Coastal Virginia Offshore Wind is currently under construction.

Winning the lease provides Dominion Energy with the option to pursue additional offshore wind development in the mid-Atlantic. The Bureau of Ocean Energy Management indicates the lease area could support between 2.1 gigawatts and 4.0 gigawatts of offshore wind energy generation. The lease area is located approximately 35 nautical miles from the mouth of the Chesapeake Bay.

In early July, the company announced the acquisition from Avangrid of the 40,000-acre Kitty Hawk Wind North offshore wind lease area, to be renamed CVOW South. If approved by regulators and constructed, CVOW South would have a capacity of 800 MW, enough capacity to serve 200,000 homes.  At this time, the company does not have an estimated timeline or cost for development of either CVOW South or the new leasehold. 

"Offshore wind is critical to our all-of-the-above approach to meet the unprecedented growth of our customer electric demand over the next decade," said Robert M. Blue, chair, president and chief executive officer of Dominion Energy. "Winning this lease area gives us another low-cost option to meet that growing demand while providing our customers with reliable, affordable and increasing clean energy."

CVOW continues to be on-time and on-budget with in-service expected by the end of 2026. To date, 54 monopiles have been installed since the installation campaign began on May 22, 2024, consistent with the company's target of 70-100 monopiles during the first of two installation seasons that run from May through the end of October.

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 much did Dominion Energy (D) pay for the new offshore wind lease area?

Dominion Energy submitted a winning bid of $17.7 million for the 176,505-acre lease area, which equates to $100 per acre.

What is the potential energy generation capacity of Dominion Energy's (D) new lease area?

The Bureau of Ocean Energy Management indicates the new lease area could support between 2.1 gigawatts and 4.0 gigawatts of offshore wind energy generation.

When is Dominion Energy's (D) Coastal Virginia Offshore Wind project expected to be completed?

The 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project is expected to be in-service by the end of 2026.

How many monopiles has Dominion Energy (D) installed for the CVOW project as of August 14, 2024?

As of August 14, 2024, Dominion Energy has installed 54 monopiles for the CVOW project since the installation campaign began on May 22, 2024.