Largest offshore wind project in US approaches major regulatory milestone
Largest offshore wind project in US approaches major regulatory milestone | Windpower Monthly
The project has reached a major regulatory milestone after BOEM announced yesterday (September 25) that it had completed its environmental analysis of the project, 43.5 km off Virginia Beach, Virginia.
The Final Environmental Impact Statement (EIS) reflects feedback from other ocean users, local communities, Tribes and the offshore wind industry, said BOEM.
“The completion of our environmental review marks another step towards a clean energy future—one that benefits communities and co-exists with other ocean users,” said BOEM Director Elizabeth Klein.
‘Significant milestone’
"The completion of CVOW's environmental review is another significant milestone to keep the project on time and on budget,” added Bob Blue, Dominion Energy's chair, president and CEO. “Regulated offshore wind has many benefits for our customers and local economies – it's fuel free, emissions free and diversifies our fuel mix to maintain the reliability of the grid."
CVOW is the largest offshore wind project under development in the US.
Virginia utility Dominion plans to install 176 x 14.7-MW wind turbines - the Siemens Gamesa SG 14-222 DD - and three offshore substations in a 456.5-sq.-km lease area.
Dominion has been looking to sell a minority stake in the project as part of an ongoing business review. Earlier this month, Blue said that “de-risking of our regulated offshore wind project through the assumption of a non-controlling equity financing partner as provided for in recent Virginia legislation” would allow Dominion to source additional capital.
Dominion recently announced the $14 billion sale of its national gas distribution companies to Canadian utility Enbridge.
A settlement had been reached in December on rules for the construction cost and performance of the $9.8 billion wind project with state regulators and other parties. Dominion had previously said that it might scrap the project were a performance guarantee required.
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.