By Diana DiGangi, Reporter, Utility Dive
Dominion Energy subsidiary Virginia Electric and Power Company has agreed to buy the offshore wind lease and associated developments related to Avangrid’s proposed 800-MW Kitty Hawk North Wind facility. Dominion will rename the project CVOW-South, associating it with Dominion’s 2.6-GW Coastal Virginia Offshore Wind project in development about 25 miles to the north, the utility said Monday.
The news came a day before the American Clean Power Association released its 2024 Offshore Wind Energy Market Report, which forecasts $65 billion in private offshore wind investment by 2030. In a release, ACP said the industry’s 2024 momentum is “likely to continue.”
Currently, the U.S. has 4.8 GW of offshore wind capacity in development after last year’s project cancelations removed 2.4 GW from that queue, the Energy Information Administration noted in a Tuesday report.
Virginia Electric and Power Company agreed to acquire Kitty Hawk North Wind from Avangrid for $160 million — $117 million for the nearly 40,000-acre lease, and $43 million in development cost reimbursement, Dominion said in a release. Dominion and Avangrid are seeking necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia Beach, and hope to close the transaction in the fourth quarter of this year.
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