Dominion to buy project from Avangrid for $160 M
Dominion Energy aims to expand its Coastal Virginia Offshore Wind (CVOW) project by acquiring the Kitty Hawk North offshore wind lease area in North Carolina from Avangrid.
Image for illustration purposes.
USA: Dominion Energy aims to expand its Coastal Virginia Offshore Wind (CVOW) project by acquiring the nearby Kitty Hawk North offshore wind lease area in North Carolina from Avangrid. Kitty Hawk North spans 40000 acres and could accommodate 800 MW of generating capacity. The cost of the offshore wind lease and associated developments is at $160 million, including a payment of around $3000 per acre for the nearly lease and associated development cost reimbursement to the unit of Spain’s Iberdrola.
Avangrid retains the ownership and associated rights to the Kitty Hawk South lease with the potential for 2.4 GW. The company said the sale will allow it to advance the development of the larger area.
Upon completion of the deal, expected in Q4 of 2024, the lease will be renamed CVOW-South. Dominion expects the project to be launched and connected to its grid in the 2030s. It might provide enough power for 200000 homes and businesses.
The company’s subsidiary Virginia Electric and Power Company is building the 2.6 GW CVOW roughly 25 miles (40.2 km) north of the CVOW-South lease. The project is scheduled to be wrapped up by the end of 2026. Dominion said that work on CVOW is progressing on time and budget, with 25 monopiles already installed.
Source: Renewables Now
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