Dominion Energy Announces Agreement to Acquire Offshore Wind Lease From Avangrid For Potential Future Regulated Generation Development
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40,000-acre lease, currently known as
Kitty Hawk North Wind , will be renamed CVOW-South and could support 800 MW of offshore wind generation capacity in the 2030s - Acquisition provides optionality to deploy additional regulated offshore wind generation to serve unprecedented electric demand growth using all-of-the-above approach supportive of goals of Virginia Clean Economy Act
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Transaction value of
~$160 million consists of lease acquisition ($117 million ) and associated development cost reimbursement ($43 million ) to ; transaction expected to close in fourth quarter of 2024Avangrid -
No change to 2024-2029 capital plan provided at
March 1, 2024 , investor day
If approved by regulators and constructed, CVOW-South would have a capacity of 800 MW, enough capacity to serve 200,000 homes and businesses, and the project would connect to the company's transmission grid. The company does not have detailed cost or in-service date estimates at this time. Such estimates would be developed during future development phases.
"With electric demand in our
"It also allows us to leverage the unique expertise we've gained during the very successful development and construction to date of the Coastal Virginia Offshore Wind (CVOW) commercial project, which reduces project risk to the benefit of customers and shareholders. The
The company is aware of the community concerns regarding the proposed landing site in
After receipt of necessary approvals from the
About
More than 4.5 million customers in 13 states energize their homes and businesses with electricity or natural gas from
Forward-Looking Language
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the anticipated completion of the CVOW commercial project and closing of the acquisition, and future capacity, of CVOW-South, which are subject to various risks and uncertainties. Factors that could cause actual results to differ from expectations include, but are not limited to, the ability to obtain or maintain the effectiveness of required regulatory approvals or other consents or approvals, the ability, in the case of CVOW-South, to satisfy other conditions to closing, timely performance by third parties under existing or future contracts, or the occurrence of severe weather events, as well as other factors detailed from time to time in the reports the company files with the
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