Dominion Energy acquires CVOW-South from Avangrid for $160 mn

By Editor


Virginia Electric and Power Company, a subsidiary of Dominion Energy, has entered into an agreement to acquire the Kitty Hawk North Wind offshore wind lease and associated developments from Avangrid for approximately $160 million. This acquisition, known as CVOW-South, includes a payment of about $3,000 per acre for the nearly 40,000-acre lease.

CVOW-South will feature an 800 MW capacity, sufficient to power 200,000 homes and businesses, connecting to the company’s transmission grid. Detailed cost estimates and an in-service date are not yet available.

Robert M. Blue, chair, president, and CEO of Dominion Energy, stated, “The Virginia model for regulated offshore wind development is proving to be an enabler of on-time and on-budget wind generation at exceptional relative value for our customers. This is the model we intend to pursue for any future offshore wind development.”

Virginia Electric and Power Company is also constructing the 2.6-GW CVOW, located about 25 miles north of the CVOW-South lease. CVOW remains on schedule and within budget, with an expected in-service date by the end of 2026. Since the installation campaign began on May 22, 2024, 25 monopiles have been installed, aligning with the company’s target of 70-100 monopiles during the first of two installation seasons, which run through the end of October.

The company acknowledges community concerns regarding the proposed landing site in Sandbridge, Va., and commits to working closely with the community, the Commonwealth of Virginia, and the City of Virginia Beach during the project consideration process.

Pending necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia Beach, Dominion Energy and Avangrid expect to finalize the transaction in the fourth quarter of 2024.

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