Dominion Energy's CVOW Costs Rise Due to Tariffs, Completion Delayed
Dominion Energy's Coastal Virginia Offshore Wind project costs have surged by over $800 million due to tariffs. The project's completion has been delayed to the end of 2027, with 81% completion and power generation underway.
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Dominion Energy reported that tariffs on steel and aluminum have increased costs for the Coastal Virginia Offshore Wind (CVOW) project by approximately $800 million. The project, which is now estimated at $11.65 billion, is 81% complete and is expected to have 176 turbines operational by the end of 2027.
A delay in the completion timeline has been announced, influenced by weather, vessel maintenance, and complex turbine installation. Despite these challenges, the company anticipates savings of over $500 million from regional power grid operator cost shifts. The Virginia State Corporation Commission will review the project merger, with a decision expected prior to 2027, amid rising costs and calls for an extended review timeline.
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