Dominion Energy to Purchase Offshore Wind Lease from Avangrid

Virginia Electric and Power Company, a wholly owned subsidiary of Dominion Energy, Inc., has revealed its agreement to purchase the Kitty Hawk North Wind offshore wind lease and associated developments from Avangrid, Inc.

The lease, encompassing nearly 40,000 acres, will be renamed CVOW-South and is valued at approximately US$160 million, including a per-acre payment of about US$3000.

Upon regulatory approval and construction, the CVOW-South project is anticipated to generate 800 MW of power, enough to cater to the needs of 200,000 homes and businesses. The generated electricity would be integrated into Dominion Energy’s existing transmission grid.

Currently, the company has not yet finalized the project’s cost or in-service date, with those details to be determined in subsequent development stages.

Dominion Energy’s Chairman, President, and CEO, Robert M. Blue, highlighted the company’s commitment to providing reliable, affordable, and increasingly clean energy to its customers.

He stated, “With electric demand in our Virginia territory projected to double in the next 13 years, Dominion Energy is securing access to power generation resources that ensure we continue to provide the reliable, affordable, and increasingly clean energy that powers our customers every day.

This transaction gives our company another potential option to meet that growing demand in a size and on a timeframe that is consistent with the regulated business mix, credit, and risk profile objectives of the recently concluded business review.”

Virginia Electric and Power Company is currently constructing the 2.6-GW Coastal Virginia Offshore Wind (CVOW) project, situated roughly 25 miles north of the CVOW-South lease. The CVOW project remains on schedule and within budget, with its in-service date expected by the end of 2026.

Since the installation campaign began on May 22, 2024, 25 monopiles have been successfully installed, aligning with the company’s goal of installing 70-100 monopiles during the initial installation season.

Dominion Energy acknowledges community concerns regarding the proposed landing site in Sandbridge, Virginia. The company is dedicated to collaborating with the community, the Commonwealth of Virginia, and the City of Virginia Beach as it evaluates this project.

Following the receipt of necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia Beach, Dominion Energy and Avangrid anticipate finalizing the transaction in the fourth quarter of 2024.

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