Dominion Energy Secures 176,505-acre Lease Area from the Bureau of Ocean Energy Management For Potential Regulated Offshore Wind Development
Dominion Energy has secured a 176,505-acre lease area off the coast of Virginia Beach for potential offshore wind development.
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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
Details
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- Dominion Energy submits winning bid of
$17.7 million Virginia Beach ; equates to$100 - 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
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
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SOURCE Dominion Energy
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