Final Federal Approvals for Dominion Energy's Coastal Virginia Offshore Wind Represent Another Major Milestone Towards Successful Project Completion

Rhea-AI Summary

Dominion Energy has received final approvals from the Bureau of Ocean Energy Management and the Army Corps of Engineers to begin construction of the 2.6-gigawatt Coastal Virginia Offshore Wind project. Once fully constructed in late 2026, the wind farm is expected to generate enough clean, renewable energy to power up to 660,000 homes. The project remains on budget and on schedule, creating significant economic development and job opportunities in the Hampton Roads region and the Commonwealth of Virginia.

Positive

• Final approvals from the Bureau of Ocean Energy Management and the Army Corps of Engineers have been obtained
• The wind farm is expected to generate enough clean, renewable energy to power up to 660,000 homes
• The project remains on budget and on schedule
• More than 750 Virginia-based workers have been engaged on the project, with over 1,000 local jobs needed to support ongoing operations and maintenance

Negative

• None.

Energy Market Analyst

The final federal approvals for the construction of the Coastal Virginia Offshore Wind (CVOW) project signify a substantial milestone in the United States' renewable energy sector. As the largest offshore wind farm in the nation, CVOW's capacity of 2.6 gigawatts is a considerable addition to the energy grid, potentially powering up to 660,000 homes. The direct implications for the energy market include increased supply of clean energy, which could lead to a reduction in the reliance on fossil fuels and potentially lower energy prices in the long-term.

Moreover, the project is illustrative of the growing trend towards renewable energy sources, which is reshaping investment patterns within the energy sector. Investors might anticipate a rise in the valuation of companies engaging in similar renewable projects, while traditional energy companies may face increased pressure to diversify their energy portfolios. The project's adherence to budget and schedule is also a positive indicator of management efficiency, which could positively influence investor confidence in Dominion Energy.

Environmental Economist

The environmental implications of the CVOW project are significant, as the transition to renewable energy sources is a key component in reducing carbon emissions. From an economic perspective, the environmental benefits translate into potential cost savings in healthcare and environmental cleanup, as well as mitigating the economic impacts of climate change. This project can serve as a benchmark for the cost-effectiveness of large-scale renewable energy projects, influencing policy decisions and investment in green infrastructure.

Furthermore, the CVOW project can act as a catalyst for regional economic development, particularly in Hampton Roads, through the creation of over 1,000 local jobs. The ripple effects of such employment can boost local economies and contribute to a more sustainable economic model that balances growth with environmental stewardship.

Construction Industry Analyst

The issuance of permits by the Bureau of Ocean Energy Management (BOEM) and the U.S. Army Corps of Engineers is a critical step in the progression of the CVOW project and reflects positively on the construction industry's ability to undertake large-scale infrastructure projects. The onshore and offshore construction activities are poised to provide substantial business for companies specializing in heavy lift and rigging, maritime provisioning and cyber security, among others.

For the construction sector, the project represents a diversification opportunity into renewable energy infrastructure, which is expected to see significant growth. The expertise developed through the CVOW project could become a competitive advantage for the involved construction and engineering firms. Additionally, the project's successful adherence to the projected timeline and budget could set a precedent for future offshore wind farm constructions, potentially influencing investor sentiment towards companies within this industry.

• Bureau of Ocean Energy Management provides final approval of Coastal Virginia Offshore Wind's (CVOW) Construction and Operations Plan
• Army Corps of Engineers issues permit to ramp up onshore construction activities
• CVOW remains on budget and on schedule to begin offshore construction in the second quarter of this year

RICHMOND, Va., Jan. 30, 2024 /PRNewswire/ -- Dominion Energy announced today it has received the last two major federal approvals needed to begin construction of its 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW), keeping the largest offshore wind farm in the United States on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026.

The Bureau of Ocean Energy Management (BOEM) provided its final approval of CVOW's Construction and Operations Plan (COP), which authorizes construction offshore. The U.S. Army Corps of Engineers issued its permit to allow for permitted impacts to U.S. waters, including the route of the electric transmission line that will connect the clean, renewable energy generated offshore to the electric grid onshore.

"Virginia is leading the way for offshore wind as we near the start of offshore construction for Coastal Virginia Offshore Wind," said Bob Blue, Dominion Energy's chair, president, and chief executive officer. "These regulatory approvals keep CVOW on time and on budget as we focus on our mission of providing customers with reliable, affordable and increasingly clean energy."

Offshore wind's economic development and jobs benefits are transformative for Hampton Roads and the Commonwealth. More than 750 Virginia-based workers – nearly 530 in the Hampton Roads region – have been engaged on the CVOW project or with other businesses supporting CVOW. This work includes redevelopment activities at the Portsmouth Marine Terminal, construction of the offshore wind Monitoring and Coordination Center, maritime provisioning, ship upkeep, heavy lift and rigging, cyber security, food service and hospitality. More than 1,000 local jobs will be needed to support ongoing operations and maintenance of this facility after the project begins commercial operation.

"In an important step forward, we are thrilled to see the Coastal Virginia Offshore Wind project receive two major approvals that will place the nation's largest offshore wind farm right off the coast of Virginia," Senator Mark Warner, Senator Tim Kaine and Representative Bobby Scott said in a joint statement. "The progress on this project to date speaks volumes about the level of cooperation between the Biden administration, the Commonwealth of Virginia, and Dominion Energy, and their commitment to the future of green energy in the Commonwealth. We look forward to continuing to work together to see this project through to the finish line."

CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach. Some onshore construction activities began in November 2023 following BOEM's favorable Record of Decision and will quickly ramp up with these last approvals. In addition, initial offshore construction activities related to the export cable and the monopile foundation installation is expected to begin in the second quarter of this year.

About Dominion Energy

About 7 million customers in 15 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

What approvals did Dominion Energy receive for the Coastal Virginia Offshore Wind project?

Dominion Energy received final approvals from the Bureau of Ocean Energy Management and the Army Corps of Engineers to begin construction of the Coastal Virginia Offshore Wind project.

How much clean, renewable energy is the Coastal Virginia Offshore Wind project expected to generate?

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

Is the Coastal Virginia Offshore Wind project on budget and on schedule?

Yes, the project remains on budget and on schedule to begin offshore construction in the second quarter of this year.

How many local jobs will be needed to support ongoing operations and maintenance of the Coastal Virginia Offshore Wind project?

More than 1,000 local jobs will be needed to support ongoing operations and maintenance of the wind farm after the project begins commercial operation.