Virginia’s offshore wind farm clears major construction milestone

Dominion Energy announced that 78 monopile foundations and 4 offshore substation foundations were installed for the 2.6GW Coastal Virginia Offshore Wind (CVOW) project during the first installation season.

The company has therefore achieved its initial objectives of at least 70 monopiles set into the sea floor 27 miles off the coast of Virginia Beach.

CVOW, the largest offshore wind project currently under construction in the United States, will consist of 176 turbines. Construction remains on-budget and on schedule to be complete in late 2026, Dominion said, and the project is now 43% complete.

For the next few months, the company will focus on installation of the first offshore substation, continued export cable lays and onshore transmission construction, and placement of transition pieces on top of monopiles in preparation for turbine installation starting in 2025.

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"Our Coastal Virginia Offshore Wind project shows that regulated offshore wind works in the United States," said Robert M. Blue, Dominion Energy's chair, president and chief executive officer. "As we face unprecedented customer demand, offshore wind is critical to our diverse, all-of-the-above generation mix to keep the lights on for our customers with affordable, reliable and increasingly clean energy."

The monopile foundations, which are being staged at Portsmouth Marine Terminal, are single vertical, steel cylinders manufactured by EEW SPC and are being installed into the sea floor to support the wind turbine generators supplied by Siemens Gamesa Renewable Energy.

Dominion said it expects monopile installations will resume in May 2025.

Last week, as part of an initiative to reduce its debt, Dominion Energy closed on a transaction to sell a 50% non-controlling interest in the CVOW project to alternative investment firm Stonepeak. Dominion will retain full control over the construction and operations of the project, which continue to proceed “on time and on budget,” according to the utility. Stonepeak will have customary minority rights.

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

By closing this transaction with Stonepeak, Dominion Energy has completed its business review debt reduction initiatives. During the review, the company said it reduced its debt by approximately $21 billion.

With the closings of the Cove Point LNG, East Ohio Gas, Questar Gas and Wexpro, and Public Service Company of North Carolina sales; and completion of the fuel securitization at Dominion Energy Virginia and the offshore wind partnership, Dominion has now achieved 100% of its business review target. The company says those moves improved its balance sheet, reduced its risk profile, and established a renewed focus as a pure-play, state-regulated electric utility business.

Originally published by Sean Wolfe on renewableenergyworld.com