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The estimated total costs for the 2.6-GW Coastal Virginia Offshore Wind (CVOW) in the US have increased by 9% but the project is on track to be completed at the end of 2026, Dominion Energy Inc (NYSE:D) said on Monday.The cost budget for the project, including, contingency and excluding financing costs, now stands at USD 10.7 billion (EUR 10.38bn). The increase from the original USD 9.8 billion comes as a result of rising network upgrade costs assigned by regional electric grid operator PJM and higher onshore electrical interconnection costs. Meanwhile, the estimates for other costs for the project have remained unchanged, Dominion Energy said. Under a comprehensive stakeholder settlement arrangement, 50% of the updated total project costs above USD 10.3 billion are unrecoverable from customers and borne by the project owner. As a result, the expected average impact over the life of the project to a typical residential customer using 1,000 kWh per month will increase by USD 0.43 per month. Dominion Energy has already agreed a non-controlling equity financing deal with Stonepeak, for the latter to fund 50% of project costs up to USD 11.3 billion, thus covering half of the USD-900-million total project cost hike. The CVOW project is set to create the largest offshore wind farm in the US. It is being built 27 miles (43.5km) off the coast of Virginia, with its 176 Siemens Gamesa turbines expected to generate electricity for up to 660,000 homes annually. Around 50% of the project is now complete. The installation of the first 16 transition pieces has been finalised and the first three offshore substations were recently delivered to the Portsmouth Marine Terminal in Virginia Beach. (USD 1.0 = EUR 0.971) |
