Dominion Energy Reports Offshore Wind Farm Is 85% Complete
Dominion Energy gave investors a positive update on its offshore wind farm, Coastal Virginia Offshore Wind, during its most recent earnings call. While there has not been a lot of positive news in the U.S. sector, the company stresses they remain on schedule after having delayed the completion target and says the estimated power cost continues to fall significantly.
As of the end of October, Dominion Energy reports the project overall is 85 percent complete, with the focus continuing to be on the installation of the wind turbines and commissioning. It reports that 100 percent of the nacelles, towers, and blades have now been fabricated. The focus is on installation.
The company reports it is taking approximately two days from jack up to jack down for the installation of a wind turbine, excluding the time for loadout, transit, weather, and other issues, including maintenance. September and October were slowed a little by weather issues and maintenance activities for the company’s wind turbine installation vessel Charybdis, but it says the maintenance is now completed and work is proceeding.
Since the start of installations in January, a total of 44 wind turbines have been installed, and work is underway on number 45. When completed, the wind farm will consist of 176 Siemens Gamesa 14 MW wind turbines. Since achieving first power in March, the project now has installed 640 MW of generating capacity, already making it among the largest in the United States. When completed, it will be 2.6 GW, placing it not only as the largest in the United States but also among the largest projects currently commissioned globally.
The company had previously delayed its target completion date from early 2027 to year-end 2027. However, it reports that the third and final offshore substation should be energized by the end of this year. It has no time restrictions on turbine installations, versus the foundations, which had seasonal issues for installation, and it expects that the work will continue forward at a similar pace.
While the overall outlook has not changed, and it remains on track with the capital budget after adjustments for the costs of tariffs and other delays, it points to a positive contribution from the project. The company continues to have increased power demands, especially from data center development. However, it points out that the offshore wind farm is expected to generate approximately $5 billion in fuel savings for customers during its first 10 years of operation.
The estimates on the levelized cost of energy (LCOE) also continue to fall. After starting with a forecasted range of $80-$90 per MWh, and adjustments for changes after the change in administrations, they have lowered the LCOE to $62, down from an estimate of $83 presented in August.
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The company continues to strongly believe in the benefits of the wind energy project. Analysts on the call congratulated the company for its progress and efforts to reduce risk from the project.
The positive report comes as after further challenges coming from the Trump administration to the sector. The Department of Justice has filed in the courts, seeking to review the permitting for approved projects and, in the case of Revolution Wind, a project that has largely completed the installation of its turbines. Several court challenges are pending both to the efforts to review the permits as well as the administration's buying back previously issued licenses.
