RICHMOND, Va. — Dominion Energy has secured a significant offshore wind lease area off the coast of Virginia Beach, furthering its commitment to renewable energy development. The company won the lease for a 176,505-acre area from the Bureau of Ocean Energy Management (BOEM) with a bid of $17.7 million, which equates to $100 per acre.
This acquisition provides Dominion Energy with the option to expand its offshore wind portfolio in the mid-Atlantic region. According to BOEM, the newly secured lease area could support between 2.1 and 4.0 gigawatts of offshore wind energy generation. The site is located approximately 35 nautical miles from the Chesapeake Bay and is adjacent to the company’s ongoing 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project.
“Offshore wind is critical to our all-of-the-above approach to meet the unprecedented growth of our customer electric demand over the next decade,” said Robert M. Blue, chair, president, and chief executive officer of Dominion Energy. He emphasized that securing the lease offers a low-cost option to meet rising demand while enhancing the company’s commitment to delivering reliable and affordable clean energy.
The lease acquisition follows Dominion Energy’s recent purchase of the 40,000-acre Kitty Hawk Wind North offshore wind lease area from Avangrid, now renamed CVOW South. If approved by regulators and constructed, CVOW South would have a capacity of 800 megawatts, sufficient to power 200,000 homes. However, the company has not yet provided a timeline or cost estimate for the development of CVOW South or the newly acquired lease area.
Dominion Energy remains focused on completing its Coastal Virginia Offshore Wind project on time and within budget. The project, expected to be operational by the end of 2026, has already seen significant progress, with 54 monopiles installed since May 22, 2024. The company aims to install 70-100 monopiles during the first of two installation seasons, which run from May through October.