The capital cost of Dominion Energy’s 2,640-MW offshore wind farm project in Virginia jumped, along with the Levelized Cost of Energy (LCOE).
Initially, the capital cost is set to USD8 billion, but the goal was raised to around USD10 billion after the company conducted engineering and solicitations for all components and services.
The cost of the wind turbines, monopiles, transition pieces, offshore substations, along with transport and installation costs are expected to be USD6.9 billion, the costs for onshore transmission, substations, and upgrades are predicted at USD1.4 billion, while the remaining USD1.5 billion is for other project costs and contingency.
The project’s original costs guidance was at USD87/MWh, remaining in the target of USD80-90 MWh, but the currently-debated potential offshore wind tax credit could lower them to USD80/MWh.
The company said that the LCOE is substantially lower than the 125/MWh maximum established by the Virginia Clean Economy Act. However, the construction of the project must start before U2024 for tax purposes or enter service before 2028.
The Coastal Virginia Offshore Wind Project aims to complete in 2026.
