Virginia Electric and Power Company, a wholly owned subsidiary of Dominion Energy, has announced that it has agreed to acquire the Kitty Hawk North Wind offshore wind lease and associated developments, which will be known as CVOW-South, from Avangrid.
The company acquires the wind lease for approximately $160 million, inclusive of a payment of about $3,000 per acre for the nearly 40,000-acre lease. If approved by regulators and constructed, CVOW-South would have a capacity of 800 MW. The company does not have detailed cost or in-service date estimates at this time. Such estimates would be developed during future development phases. Virginia Electric and Power Company is constructing the 2.6-GW CVOW, located about 25 miles north of the CVOW-South lease. After receipt of necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia Beach, Dominion Energy and Avangrid expect to close the transaction in the fourth quarter of 2024.
