Dominion Energy Receives Approval from Virginia State Corporation Commission for Coastal Virginia Offshore Wind Project

Rhea-AI Summary

Dominion Energy has received approval from the Virginia State Corporation Commission for the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project, positioned 27 miles off Virginia Beach. This project is expected to generate enough renewable energy to power up to 660,000 homes and save Virginia customers more than $3 billion during its first decade, potentially reaching $6 billion if current commodity price trends continue. With an investment of approximately $9.8 billion, CVOW aims to support energy diversity and create hundreds of jobs in the region.

Positive

• Approval for the 2.6-gigawatt Coastal Virginia Offshore Wind project enhances energy diversity.
• Projected savings for Virginia customers could reach up to $6 billion over 10 years due to renewable energy generation.
• Investment of approximately $9.8 billion indicates strong commitment to renewable energy.
• Expected to create hundreds of jobs during construction and over a thousand during operations.

Negative

• None.

• Up to $6 billion in fuel savings possible for customers during project's first decade of operation, if ongoing commodity pressures continue 
• Project will generate enough clean, renewable energy to power up to 660,000 homes
• Company evaluating performance requirement

RICHMOND, Va., Aug. 5, 2022 /PRNewswire/ -- Dominion Energy reached a major milestone in the development of the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project by receiving approval from the Virginia State Corporation Commission for the project to be constructed 27 miles off the coast of Virginia Beach.

CVOW's schedule calls for construction to be complete in 2026, when it can generate enough clean energy to power up to 660,000 homes. The final order from the SCC affirms that CVOW meets all Virginia statutory requirements for rider cost recovery and the issuance of a Certificate of Public Convenience and Necessity for the onshore infrastructure. The order also includes a performance requirement, but does not outline the details surrounding that requirement.

"Our customers expect reliable, affordable energy, and offshore wind is key for delivering on that mission. We are very pleased that the commission has approved this important project that will benefit our customers. We are reviewing the specifics of the order, particularly the performance requirement," said Robert M. Blue, Dominion Energy Chair, President and CEO.

CVOW represents a clean-energy investment of approximately $9.8 billion, and as the largest project of its kind in the United States, CVOW is good for energy diversity, the environment and Virginia's economy.

As a renewable energy resource, offshore wind turbines have no fuel costs, which is especially beneficial considering the recent rise in fuel costs across the country. The project is expected to save Virginia customers more than $3 billion during its first 10 years in operation. However, if these ongoing commodity market pressure trends continue, those savings could total up to nearly $6 billion – almost double the savings.

Offshore wind's economic development and jobs benefits are transformative for Hampton Roads and the Commonwealth, including diverse communities. CVOW could create hundreds of direct and indirect jobs during construction and more than a thousand during operations, while attracting companies to make investments to make Virginia a hub for offshore wind.

As part of its order, the SCC granted approval for approximately 17 miles of new transmission lines and other onshore infrastructure needed to deliver the clean, renewable energy offshore to homes and businesses across Virginia.

In addition to solar, energy storage and nuclear, offshore wind is a key component to diverse energy generation strategy to meet the Commonwealth's clean energy goals and Dominion Energy's own net zero target. Offshore wind complements the company's growing solar portfolio in Virginia, since offshore wind and solar generate peak energy at different times throughout the day and year.

About Dominion Energy

About 7 million customers in 14 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 sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050. Please visit DominionEnergy.com to learn more.

View original content to download multimedia:https://www.prnewswire.com/news-releases/dominion-energy-receives-approval-from-virginia-state-corporation-commission-for-coastal-virginia-offshore-wind-project-301601052.html

SOURCE Dominion Energy

FAQ

What is the Coastal Virginia Offshore Wind project by Dominion Energy?

The Coastal Virginia Offshore Wind (CVOW) project is a 2.6-gigawatt renewable energy initiative approved by the Virginia State Corporation Commission, capable of powering up to 660,000 homes.

How much could Virginia customers save from the CVOW project?

Customers in Virginia could save more than $3 billion during the project's first decade, with potential total savings reaching $6 billion if commodity price trends continue.

When is the CVOW project expected to be completed?

The CVOW project is scheduled for construction completion in 2026.

What are the economic benefits of the CVOW project?

The CVOW project is expected to create hundreds of jobs during construction and over a thousand jobs during operations, contributing to the economic development of Hampton Roads and Virginia.

What is the total investment for the CVOW project?

The CVOW project represents a clean-energy investment of approximately $9.8 billion.