Dominion’s offshore wind project suspended for 90 days by US Interior Department

Construction of the Coastal Virginia Offshore Wind farm, led by Dominion Energy, has been halted for three months by a federal decision, threatening a key energy project for US military and technological infrastructure.

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The Coastal Virginia Offshore Wind (CVOW) project, developed by US utility Dominion Energy, has been temporarily suspended for 90 days by an order from the United States Department of the Interior. The decision comes as the project entered its final construction phase, with a planned capacity of 2,600 megawatts aimed at meeting the surging energy demand in Virginia.

According to Dominion Energy, this suspension could undermine the reliability of the regional power grid. The company stated that CVOW plays a central role in supplying electricity to several critical infrastructures, including major military facilities, high-capacity shipyards, and the world’s largest concentration of data centres. The company emphasised that Virginia currently experiences the fastest energy demand growth in the country.

A strategic project at the core of energy priorities

Dominion Energy highlighted the strategic importance of the project, both for national security and the country’s technological advancement. The company noted that electricity from the wind farm would power data centres involved in artificial intelligence technologies. CVOW is also integrated into Virginia’s energy plan, which includes a mix of natural gas, advanced nuclear, and renewable sources.

The operator stated that the project, fully owned by American interests, received approval from Virginia state regulators in 2022 following a review of its costs and benefits. These same regulators, in coordination with several federal agencies, oversee the project’s security protocols, which the company described as among the most robust in the energy sector.

A long-term construction site put on hold

The CVOW project has been in development for over ten years and has received bipartisan support. It was designed in close coordination with the military to avoid interference with operations. Located between 27 and 44 nautical miles offshore, the site is far enough to avoid visual impact concerns. Two pilot turbines have been operating for five years without raising any national security issues.

Dominion warned of the economic and operational consequences of the suspension. The group anticipates upward pressure on energy prices and significant job losses. It also stated that the delay could compromise grid stability in a state where electricity demand is expected to double.

An industrial and energy issue for Virginia

CVOW is intended to significantly contribute to Virginia’s “All-American, All-Of-The-Above” energy plan. This strategy aims to diversify power sources to secure electricity supply for the country’s most sensitive infrastructure, particularly military bases and defence-related industrial sites.

Dominion Energy declared its readiness to resume construction as soon as possible. The company reaffirmed its commitment to supplying the energy required for Virginia’s strategic sectors, especially those tied to artificial intelligence and military shipbuilding.

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