February 5, 2025 — The utility said the increase of nearly $1 billion is tied to higher costs of required upgrades to the electric grid and onshore electrical infrastructure.
The cost of building the nation’s largest offshore wind farm off the Virginia Beach coast has jumped by nearly 10% since the original budget, Dominion Energy announced this week.
The utility now plans to spend $10.7 billion on the Coastal Virginia Offshore Wind project, up from $9.8 billion in 2021.
Dominion said in a news release the increase is tied to higher costs from building electrical interconnection onshore, as well as network upgrades assigned by the regional electric grid operator.
That operator, PJM Interconnection, coordinates the movement of electricity in 13 states, including Virginia and northeastern North Carolina.
“New electric generation resources constructed within PJM, like CVOW, are assigned costs by PJM that are deemed necessary to effectively integrate these resources and ensure the reliability and stability of the electric grid,” Dominion said in this week’s statement.