Overview

The Coastal Virginia Offshore Wind (CVOW) Farm is a greenfield project by Dominion Energy off the coast of Virginia Beach, USA. With a project value of USD 9.8 billion, construction is expected to commence in 2024 and will be completed by 2026. Upon completion, the wind farm will have a capacity of 2,600 MW, making it the largest offshore wind farm in the United States.

CVOW aims to generate enough clean renewable energy to power up to 660,000 homes. It will contribute to a carbon-free energy future by avoiding carbon emissions equivalent to removing 1 million cars from the road annually. This project enhances energy security, reliability, and fuel cost savings by diversifying the energy supply.

Project Background

The Coastal Virginia Offshore Wind (CVOW) project traces its origins to a competitive lease sale held by the Bureau of Ocean Energy Management (BOEM) on September 4, 2013, where Dominion Energy emerged as the winner of Lease Area OCS-A 0483. The lease area spans 112,799 acres and is situated 23.5 nautical miles offshore of Virginia in federal waters (Atlantic Ocean). 

Initially launched as the Virginia Offshore Wind Technology Advancement Project (VOWTAP), it was later renamed to CVOW following revisions to the Research Activities Plan (RAP) in 2017 due to advancements in technology.

The pilot project aims to demonstrate a 12 MW grid-connected offshore wind test facility on the Outer Continental Shelf (OCS), approximately 27 miles off Virginia Beach. This pilot project, operational from the fall of 2020, was designed to gather data and insights to inform future large-scale renewable energy production in the adjacent commercial lease area. 

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Dominion Energy, in collaboration with Ørsted Energy as the EPC contractor and L.E. Myers Company for onshore electrical design and construction, headed the offshore wind development. The Virginia Department of Energy holds the site lease, and Dominion Energy operates it.

BOEM's approval of the revised Research Activities Plan in June 2019 marked the final major approval needed to begin construction. The Biden-Harris Administration's endorsement on October 31, 2023, further solidified the project's standing as the largest offshore wind project in the nation.

Project Location Map

The Coastal Virginia offshore wind project is located about 23.7 miles off the coast of Virginia Beach, Virginia, U.S.

Technical Specifications

The Coastal Virginia Offshore Wind (CVOW) project comprises a 12 MW pilot phase and a 2,600 MW commercial-scale phase. The pilot phase features two Siemens Gamesa SWT-6.0-154 wind turbines, each with a capacity of 6 MW, located 27 miles in the East Coast within a 2,135-acre lease area. 

These 176 offshore wind turbines stand more than 600 feet tall, with bases extending 80 feet below the ocean's surface. The pilot phase includes 46 km of 33kV inter-array and export cables, along with an onshore substation. Siemens Gamesa will build a facility at Portsmouth Marine Terminal to produce offshore wind turbine blades for the overall USD 8 billion project off the coast of Virginia.

For the commercial-scale phase, each of the three 880 MW phases will deploy over 70 turbines, potentially Siemens 14 MW models, totaling approximately 180 turbines. These turbines will be more than 800 feet tall and located within a 112,800-acre lease area adjacent to the pilot project. 

The site has ocean depths ranging from 72 to 125 feet and wind speeds between 8 to 9.5 meters per second. This phase is set for commissioning in 2024, 2025, and 2026, with the final installation providing enough clean energy to power up to 660,000 homes.

The project infrastructure includes approximately 355 kilometers of cables, with 130 kilometers being inter-array cables transmitting power from the turbines to offshore substations. The remaining cables will facilitate four export links over a 39-kilometer route to the onshore substation near Camp Pendleton. The commercial-scale project will also feature advancements in offshore wind technology, informed by the operational insights gained from the pilot phase.

Contractors Involved  

Project Benefits

The Coastal Virginia Offshore Wind (CVOW) project will replace 2.6 gigawatts of fossil fuel energy with wind power, significantly reducing carbon dioxide emissions and minimizing the need for fossil fuel infrastructure like pipelines and natural gas plants. This shift to offshore wind energy will prevent the release of pollutants into the atmosphere and our drinking water, contributing to the fight against climate change.

Environmentally, the CVOW project will generate enough clean energy to power up to 660,000 homes, equating to the removal of 1 million cars worth of carbon emissions from the road annually. This large-scale renewable energy project enhances Virginia's energy security and reliability while stabilizing energy prices by diversifying the energy supply.

Economically, CVOW is poised to bring benefits to the Commonwealth of Virginia, particularly the Hampton Roads region. A 2020 study highlights that the project will support approximately 1,000 jobs, contribute USD 210 million in economic output, and generate USD 6 million in revenues for local governments and USD 5 million in Virginia state tax revenues. The project also promises protection against blackouts, ensuring a more resilient energy infrastructure.

Project cost

The total estimated project cost is USD 9.8 Billion. In February this year, Dominion Energy announced plans to sell a 50% non-controlling stake in the Coastal Virginia Offshore Wind (CVOW) project to Stonepeak, an investment firm, for approximately USD 3 billion. 

This agreement, set to close by the end of 2024, forms an offshore wind partnership where Dominion Energy will maintain full operational control over the offshore construction and operations of the project. The transaction will provide significant funding, with both Dominion Energy and Stonepeak contributing equally to the remaining capital required, ensuring the project remains on-time and on-budget.

The financial terms stipulate a 50/50 cost-sharing arrangement up to USD 11.3 billion, accounting for potential increases of up to 20% over the current budget. If costs exceed this threshold, Stonepeak has the option to contribute additional capital. 

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The updated levelised cost of energy (LCOE) for CVOW is projected at USD 77/MWh in 2027 dollars, benefiting from a 30% production tax credit. Without the Renewable Energy Credits (RECs), the LCOE stands at USD 86/MWh. This reflects a decrease from the previous estimate of USD 80–90/MWh, indicating improved cost efficiency for the project.

Approval from various regulatory bodies, including the State Corporation Commission (SCC) and the North Carolina Utilities Commission, is required for the transaction, which also involves consents from the Bureau of Ocean Energy Management and other agencies regarding the assignment of contracts and permits.

Project Timeline

Current and Future Outlook

The CVOW construction started in May 2024 after the project received its final federal permit. The expected completion date is fixed for late 2026 and it will be the largest wind energy installation in the U.S., in terms of both size and energy output.

Dominion still has to secure a Clean Air Act Outer Continental Shelf permit from the Environmental Protection Agency to regulate air pollutants from the construction and operation of the farm.

According to the latest update in December 2024, Windar Renovables has fabricated the first of 90 offshore wind towers ordered by Siemens Gamesa for its Coastal Virginia Offshore Wind project.

Conclusion

The Coastal Virginia Offshore Wind (CVOW) project, led by Dominion Energy, is a groundbreaking USD 9.8 billion initiative poised to become the largest offshore wind farm in the United States. With a 2,600 MW capacity, the project will generate enough clean energy to power up to 660,000 homes. It will reduce carbon emissions and enhance energy security. Scheduled for completion in 2026, CVOW is a dual-phase project that includes an operational pilot phase and an expansive commercial-scale phase with 176 wind turbines. 

Economically, it promises benefits to the offshore wind industry including the creation of approximately 1,000 jobs and tax revenues for Virginia. The recent partnership with Stonepeak ensures financial stability and timely project completion. The offshore wind project is testament for Virginia's leadership for net-zero emissions goal by 2050. 

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