Dominion Energy costs for its Virginia offshore wind farms rise by 9%

Dominion Energy, a U.S. utility company, said that the estimated project costs of its Coastal Virginia off-shore wind farm had increased by about 9% on Monday to $10.7 billion because of higher network upgrade expenditures.

The project, which is estimated to be 2,600 megawatts (MW), is made up of 176 turbines that can each generate 14.7 MW. It is located about 27 miles (43.5 km) off the coast Virginia Beach and will be the largest offshore windfarm in the United States.

Dominion stated that PJM, a local electric grid operator in the area, estimates higher network upgrade costs to reflect the significant growth of demand, which requires additional generation and transmission resources throughout the system.

The U.S. offshore industry is struggling with rising costs, cancelled projects and an accident that has made headlines. Donald Trump also cast doubt on the future of the industry after he halted new federal offshore leasing in anticipation of an economic and environmental review.

Dominion stated that the network upgrades will not affect project completion or timeline. The company is on track to complete the project on time by the end of 2026. (Reporting and editing by Maju Samuel in Bengaluru, with Mrinalika Roy reporting from Bengaluru)

(source: Reuters)