Dominion Energy recently announced the latest progress on the Coastal Virginia Offshore Wind (CVOW) project. As the largest offshore wind development project currently underway in the United States, it has now completed approximately 71% of its construction. Although the full completion date has been slightly pushed back to early 2027, the first power is still expected to be delivered in the first quarter of 2026. Dominion Energy reported achieving significant milestones in the installation of monopile foundations, export cables, offshore substations, and the first wind turbine.
Regarding construction and installation, all monopile foundations (176 units) and deepwater export cables (9 units) have been installed. Transition pieces have been installed for 119 foundations, with an additional 57 manufactured and awaiting installation. For the offshore substations, Substation #1 and #2 were installed in March and November 2025, respectively, with Substation #3 planned for installation by the end of Q1 2026. The first wind turbine was installed in January 2026, and tower sections, nacelles, and blades are being delivered in phases to the Portsmouth Marine Terminal.
Project progress has been partially impacted. Turbine installation is expected to continue throughout 2026, with some work extending into early 2027. Delays are partly attributed to a BOEM suspension order issued in December 2025, which temporarily halted offshore activities. A preliminary injunction granted in January 2026 allowed the CVOW project to resume offshore construction.
The project cost has been updated. The revised capital budget is $11.5 billion (including contingencies). Cost increases are primarily due to construction delays related to BOEM (covering $228 million) and tariff impacts (totaling $580 million, partially offset by cost-sharing). As of December 31, 2025, approximately $9.3 billion has been invested in the project, with about $2.2 billion in remaining costs. The levelized cost of energy remains stable at $84 per megawatt-hour.
The CVOW project has a total capacity of 2.6 gigawatts, plans to install 176 offshore wind turbines, and is expected to power up to 660,000 homes. Located approximately 27 miles off the coast of Virginia Beach, the project is being developed by Dominion Energy. As the largest offshore wind project in the United States, the continued advancement of CVOW holds significant symbolic importance for the US offshore wind industry.
