November 6 (Renewables Now) - Virginia’s regulatory agency The State Corporation Commission (SCC) has granted approval to Ørsted A/S (CPH:ORSTED) and Dominion Energy Inc’s (NYSE:D) 12-MW offshore wind demonstrator off the coast of Virginia, it was announced last week.
The wind farm, comprised of two 6-MW turbines, will be built in a federal lease area about 27 miles (43.5 km) off the coast of Virginia Beach. The total cost of the project is estimated at USD 300 million (EUR 263.1m) and will be funded through existing base rates.
In its ruling, issued on Friday, SCC states that Dominion Energy’s project petition is not “deemed prudent” under its typical review in view of the risk put on ratepayers as Dominion Energy has failed to prove that the pilot facility is needed to ensure “reliable service to its customers at just and reasonable rates.” Nevertheless, the project was given the green light as such a development is found to be in the public interest.
Planned to use two Siemens Gamesa 6-MW turbines, the Coastal Virginia Offshore Wind (CVOW) project is set to create the first offshore wind farm in the mid-Atlantic. It will provide permitting, construction and operational experience for the development of an adjacent wind lease area, held by Dominion Energy, that could accommodate up to 2,000 MW of turbines, if fully developed.
Dominion Energy and Ørsted expect to start generating power from the pilot facility in 2020, while work on a larger commercial offshore wind project is seen to begin as early as 2024.
(USD 1.0 = EUR 0.877)