Federal Court Allows Dominion Energy to Continue Offshore Wind Project

NORFOLK, Virginia, Jan 16 (Reuters) – A federal judge has ruled that Dominion Energy can resume work on its offshore wind project in Virginia, marking a significant win for the company against President Donald Trump's anti-offshore wind policies.

Judge Jamar Walker from the U.S. District Court for the Eastern District of Virginia issued a temporary order enabling Dominion to restart construction on the $11.2 billion project while it challenges the Trump administration's actions.

This ruling follows similar decisions earlier in the week from a U.S. court in Washington, where offshore wind developers also succeeded in their legal battles against the Department of the Interior's halt on five projects in federal waters.

The government had suspended these projects due to new confidential information regarding national security concerns related to radar interference.

During the hearing, Judge Walker commented that the stop-work order was too broad for Dominion's specific project, emphasizing that the risks mentioned by the government were associated with the operation of wind farms, not their construction.

The Interior Department has not yet responded to requests for comments on this ruling.

These court decisions are important for companies and their shareholders, as they could pave the way for the completion of multi-billion-dollar projects. However, ongoing lawsuits and the administration's negative stance on offshore wind will likely continue to impact the industry.

Under Trump's administration, offshore wind developers have faced multiple challenges, as he has criticized wind turbines for being unattractive, costly, and inefficient.

Dominion has already invested nearly $9 billion into the project and is losing about $5 million each day during the work stoppage.

The project has been under construction since 2023, with plans to generate enough energy to power 600,000 homes.