Dominion Energy's Coastal Virginia Offshore Wind (CVOW) project has reached an important milestone by sending its first electricity to the grid. This is a significant achievement for the largest offshore wind development in the U.S. after experiencing months of legal disputes, rising costs, and policy challenges.
The initial power comes from the first installed turbine located off Virginia Beach, as the 2.6-gigawatt project shifts from construction to the early stages of commissioning. Once fully operational, the facility with 176 turbines is expected to generate enough electricity to power around 660,000 homes.
Dominion's CEO, Robert Blue, announced this milestone, stating that the project delivered its first power “right on schedule” as it starts to increase its energy output. He highlighted CVOW as an essential part of Virginia's wide-ranging energy strategy, with more turbines expected to be added as the project progresses toward full completion next year.
This achievement comes after a significant legal struggle earlier this year. In January, a federal judge allowed Dominion to resume work on the $11.5 billion project after a halt was imposed due to national security concerns related to possible radar interference. The court deemed the suspension too broad, allowing construction to restart after about 25 days of delays.
This interruption came at a high cost. Dominion has since revised the project’s price to $11.5 billion, an increase of $300 million, mainly due to $228 million in costs from delays and another $137 million from tariffs. The work stoppage alone cost an estimated $5 million per day, underscoring the financial risks that come with regulatory uncertainties.
Tariffs have now become a significant issue for the project. Dominion is facing higher duties on essential imported materials, with total tariff exposure expected to hit $580 million by early 2027. The company has stated that trade policy is one of the main factors contributing to the rising costs of offshore wind projects in the country.
Despite these challenges, construction has continued to make progress. The project is now over 70% complete, with all 176 monopiles and several export cables installed.
The installation work is being done by the U.S.-flagged wind turbine installation vessel Charybdis, the first Jones Act-compliant WTIV, which began service earlier this year after previous commissioning delays.
Virginia leaders quickly celebrated this first power milestone. Governor Abigail Spanberger noted that rising electricity costs are a significant concern for families, stating that the project will help supply power to hundreds of thousands of homes while reducing pressure on utility bills. Senator Tim Kaine referred to this moment as the result of “years of hard work,” emphasizing that the project puts Virginia at the forefront of the U.S. clean energy market.
Dominion is increasingly viewing CVOW as essential infrastructure beyond just meeting climate goals, highlighting its importance in supporting the growing electricity needs of AI data centers, military bases, and industrial operations along the East Coast.