The offshore wind project is the first built in federal waters and the second offshore wind farm operated in the United States.
What is the Coastal Virginia Offshore Wind Pilot Project?
The 12-megawatt project precedes the plan of Virginia Electric and Power to build a 2.6-gigawatt offshore wind farm near the coasts of Virginia.
VOWTAP
Virginia Offshore Wind Technology Advancement Project (VOWTAP), or EA-1985, sought proposals for a 12-megawatt demonstration project near the coast of Virginia. Dominion Energy renamed the project to Coastal Virginia Offshore Wind Project (CVOW) in 2019.
Initial Funding
The Department of Energy funded the Coastal Virginia Offshore Wind as a sustainable energy project under the Virginia Offshore Wind Technology Advancement Project (VOWTAP). The department eventually removed the wind farm from the project funding because Dominion could not deliver the project earlier than 2020.
Project Ownership
Commonwealth of Virginia’s Department of Mines, Minerals, and Energy (DMME) owns the lease. Virginia Electric and Power Company (VEPCO), an electric utility company subsidiary of Dominion Energy, operates the project lease.
Dominion Energy Virginia contracted Ørsted for the EPC (Engineering, Procurement, and Contractor) work. Dominion operates the 12-megawatt test wind farm.
In August 2022, Virginia State Corporation Commission approved Dominion Energy’s proposal to build and operate the CVOW project. Dominion Energy also owns the CVOW commercial project, which will be the biggest offshore wind farm in the US at 2.6 gigawatts.
Proposed Commercial Project
After the 12-megawatt test project, Dominion Energy proposed a 2.6-gigawatt capacity wind farm with 176 offshore wind turbines. When Dominion Energy commissions the project, it will be the largest offshore wind farm in the United States.
The business sector also sees the proposed project as an opportunity to stimulate the economy of Virginia, which Virginia’s private sector positions as part of the East Coast supply chain hub.
The CVOW project is the largest of the many offshore wind projects to rise on the East Coast.
Where is Coastal Virginia Offshore Wind?
The project sought to explore offshore wind power generation 27 miles near the coast of Virginia Beach, Virginia.
Dominion will pay $44 million to the Port of Virginia to lease the Portsmouth Marine Terminal for the staging and pre-assembly area. The developer will lease the port for the foundations and turbines for the wind farm. The lease agreement lasts for ten years with 5-year extension options.
Virginia Legislation
Virginia legislature enacted laws favorable to renewable energy in the state. The legislature passed the Virginia Energy Plan in 2018 that identified wind energy as a priority for workforce development. In the same act, Virginia aimed to establish 2,000 gigawatts of wind energy in 2018. In 2018, the state legislature also enacted the Grid Transformation and Security Act (GTSA) which required Dominion and Appalachian Power to invest more in modern grids and renewable energy.
According to the GTSA, offshore wind is in the public interest of Virginians based on three out of four cost-benefit tests. As a result, Dominion gets support from the government for pushing the CVOW project.
In 2020, Virginia Governor Ralph Northam signed two significant laws helping the state move to green energy. The Virginia Clean Economy Act and the Clean Energy and Community Flood Preparedness Act require utilities to move to carbon-free electricity in 2050.
Renewable Energy Project
The 12-megawatt project is only the start of the commercial project. When Dominion Energy commissions the wind farm in 2026, the CVOW commercial project will be the biggest offshore wind project in the United States.
The clean energy will power an estimated 660,000 homes. The wind farm will also prevent approximately 5 million carbon dioxide emissions annually, equal to 1 million gas cars retired from the road.
The project is part of the state’s plan for a sustainable energy future by 2050 with net zero carbon dioxide emissions.
Wind Farm Updates
In June 2021, Dominion Energy announced that it contracted Eversource and Ørsted to charter the country’s first Jones Act-qualified wind turbine installation vessel. Dominion will first operate the shipping vessel out of the New London harbor. Charbdyis will first see action with the installation of Revolution Wind and Sunrise Wind Farms in 2023.
The 472-foot vessel costs $500 million and will install the components of the commercial wind project in 2024. Dominion’s Contracted Assets Segment owns the shipping vessel.
Project Challenges
The industry is still in its infancy at this stage of development. The growth of the offshore wind industry on the East Coast is an opportunity to expand Virginia’s industry.
The central body of water near the East Coast drives Hampton Roads’ economy, which the government still needs to fully tap for the offshore wind industry. Hampton Roads have an infrastructure of ports, a maritime workforce, and a shipbuilding industry suitable for offshore wind. The deep sea surrounding the Virginia coast also features little to no obstruction and can handle all types of cargo.
To capitalize on these opportunities, the offshore wind developers on the East Coast have come together to attract suppliers and share a supply chain base. Hampton Roads Alliance links these supply chain opportunities together by having CVOW and Kitty Hawk Offshore Wind both call for supply chain opportunities in their platform.
Hampton Roads Region houses the most maritime workforce in the United States, making it suitable for deploying many factories and manufacturing sites to help the offshore wind industry.
Pundits also criticized the wind farm for generating too costly a proposal, which may reach $10 billion. Dominion Energy CEO Bob Blue explained the higher output expected from the wind farm ensures the same impact on the customer bill.
Performance Standard
In a legal dispute between the Virginia State Corporation Commission and Dominion Energy, the developer complained about the Commission’s performance standard. Dominion claims an “untenable” 42% performance standard.
The Commission awarded the project but upset the developer by issuing penalties if Dominion did not meet the 42% efficiency goal.
With performance guarantees, the Commission maintains that the ratepayers will not pay for any shortfall in production by the wind farm below 42%.
Dominion requested for rehearing, claimed that the Commission had overreached, and threatened to bail out from the project if the Commission did not remove performance guarantees.
How many turbines are in the wind farm?
Ørsted only used two wind turbines in the pilot project. Each turbine is a 6-megawatt capacity Siemens Gamesa SWT-6.0-154.
Dominion proposed 176 turbines for the Coastal Virginia Offshore Wind Commercial Project. Each turbine in the commercial project will have a 14-megawatt capacity. The proposal is still in the development stages. Construction will begin in 2024.
Are there windmills off the coast of Virginia beach?
Ørsted installed the two wind turbines near the coast of Virginia beach. Dominion Energy contracted Ørsted for the EPC of the 12-megawatt demonstration project and commissioned the wind farm in 2020.
How much wind power did Dominion install in Coastal Virginia Offshore Wind Farm?
The proposed CVOW project will install 176 turbines for 2,546 megawatts of wind power in Virginia’s coastal area.
When is the first power of the offshore wind farm?
Based on updates, the wind farm Dominion will complete construction by 2026.