Dominion Energy's 2.6 GW Coastal Virginia Offshore Wind (CVOW) project is now about 50% complete and remains on track for completion by the end of 2026. The project has created 2,000 direct and indirect jobs and contributed $2 billion to the economy.
Construction is advancing steadily, with 16 transition pieces already installed. These serve as the connection between the foundations and the towers for the project's 176 wind turbines. In January, the first of three 4,300-ton offshore substations arrived at the Portsmouth Marine Terminal in Virginia Beach. Major components, including monopiles, transition pieces, and undersea cables, continue to be delivered for installation.
Wind turbine tower and blade fabrication has begun, while nacelle production is set to start later this quarter. Siemens Gamesa is supplying the turbines. Meanwhile, the Charybdis wind turbine installation vessel, built and operated in the United States, is now 96% complete and undergoing sea trials.
The total estimated cost of the project, excluding financing, has increased by 9%, rising from $9.8 billion to $10.7 billion. This is the first cost adjustment since the budget was submitted to the Virginia State Corporation Commission in 2021. The increase is mainly due to higher network upgrade and onshore electrical interconnection costs assigned by PJM, the regional grid operator. Offshore costs remain in line with the original budget. The project also retains a contingency fund of $222 million, which now accounts for 5% of the remaining costs.
A settlement approved by the Virginia State Corporation Commission limits the costs passed on to consumers. Half of any project costs above $10.3 billion will be covered by the project owners rather than customers. For residential consumers using 1,000 kWh per month, the expected impact on electricity bills is an increase of 43 cents per month.
The updated levelised cost of energy is now estimated at $62 per MWh, up from the previous estimate of $56 per MWh.
