RICHMOND, Va. – Dominion Virginia Power was left to consider their options after the U.S. Department of Energy (DOE) decided to withdraw $40 million in funding for its proposed offshore wind demonstration project.
Senior Vice President of Dominion Energy Solutions, Mary C. Doswell, stated, “Naturally, we are disappointed in the DOE’s decision because we still believe that offshore wind has a great potential to deliver clean, renewable energy to Virginia. However, we also recognize the unique regulatory and cost challenges involved in our project and appreciate the DOE’s desire to support other projects that may have an earlier opportunity for fruition.”
Dominion lost the funding after they could not promise the project would be up and running before 2020.
The Virginia Offshore Wind Technology Advancement Project (VOWTAP) would install two advanced-technology, 6-megawatt wind turbines in federal waters about 24 miles off the coast of Virginia Beach, Va. At peak production, the turbines would generate enough electricity to power up to 3,000 homes.
Current bids for constructing the project range from about $300 million to $380 million, compared with an initial estimate of about $230 million.