The estimated costs for what is due to be the largest offshore wind farm in the US have risen by 9% due to network and transmission upgrades.
The 2.6GW Coastal Virginia Offshore Wind (CVOW) project is currently under construction off the Atlantic coast of Virginia with commissioning expected in 2026.
It is being developed by US utility Dominion Energy, which said on Monday (3 February) that estimated costs for the project were increasing 9% – rising from $9.8 billion to $10.7 billion.
Dominion said the additional costs were due to “higher network upgrade costs which are assigned by PJM, the regional electric grid operator… as part of the generator interconnect process and higher onshore electrical interconnection costs”. It noted that this is the first cost increase since the original project budget was submitted to the Virginia State Corporation Commission (SCC) in November 2021.
The project’s updated levelised cost of energy is now $62/MWh, up from a November 2024 estimate of $56/MWh, Dominion said.
CVOW is due to comprise 176 of Siemens Gamesa’s 14MW-222 DD offshore wind turbines.
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