Dominion Energy Receives $2.6B as Stonepeak Acquires Share of Wind Farm

Dominion Energy Receives $2.6B as Stonepeak Acquires Half of Offshore Wind Farm

Dominion Energy completed the previously announced deal to sell a 50 percent interest in its Coastal Virginia Offshore Wind project to Stonepeak, a leading alternative investment firm specializing in infrastructure and real estate. The transaction continues the trend of investment firms entering the offshore wind sector while for Dominion Energy it reduces risk and is part of a broader effort to lower corporate debt. The company has said it does not signal a change in its support of offshore wind energy power generation.

"We are pleased to partner with Stonepeak on CVOW,” said Robert Blue, Chair and CEO of Dominion Energy. “Stonepeak is one of the world's largest infrastructure investors in large energy projects such as offshore wind, and its financial participation in CVOW will benefit both the project and the people who will rely on electricity from CVOW to keep the lights on and fuel economic growth in the Commonwealth."

The deal was announced in February 2024 as work on the wind farm, which is currently the largest underway in the U.S., was beginning. Dominion Energy will retain full operational control of the construction and operations of the project, while Stonepeak will have customary minority rights.

Dominion Energy received proceeds of $2.6 billion, representing reimbursement of approximately 50 percent of project-to-date capital investment. Stonepeak will fund 50 percent of the remaining project costs as they are incurred, subject to certain conditions as previously disclosed.

Offshore work is underway at the site off the coast of Virginia Beach but is pausing during the whale migration season. The company emphasizes that the project remains on schedule and budget with its expectations. The 2.6-gigawatt CVOW is scheduled to generate power for up to 660,000 homes once fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area.

Dominion Energy has demonstrated its continued interest in offshore wind beyond the first project. The company this year announced it had agreed to purchase from Avangrid for $160 million the 40,000-acre Kitty Hawk North Wind offshore wind lease which is adjacent to CVOW. In August, the company also won a 176,505-acre lease about 35 nautical miles offshore with a $17.65 million bid during the Bureau of Ocean Energy Management’s auction.

The decision to sell a portion of the offshore wind farm was part of a broader business review and debt reduction initiative for Dominion. They also sold LNG, gas, and assets in North Carolina with the entire package representing approximately $21 billion of debt reduction. Management reports that the actions have improved the company's balance sheet, reduced its risk profile, and established a renewed focus as a pure-play, state-regulated electric utility business.