Dominion Energy has announced plans to expand its Coastal Virginia Offshore Wind (CVOW) project by acquiring the Kitty Hawk North offshore wind lease area in North Carolina from Avangrid.
The Kitty Hawk North lease spans 40,000 acres and has the potential to accommodate 800 MW of power generating capacity. The transaction, valued at USD 160 million (EUR 147.6 million), includes a payment of approximately USD 3,000 per acre for the lease, along with reimbursement for associated development costs to Avangrid's unit, a subsidiary of Spain's Iberdrola.
Avangrid, retaining ownership of the Kitty Hawk South lease with potential for 2.4 GW, stated that the sale will facilitate the advancement of development in the larger area. CEO Pedro Azagra noted, “This transaction advances our strategic priorities by providing significant capital infusion for reinvestment and allows us to move forward with our long-term plans for the development of Kitty Hawk South.”
Upon completion, expected in the fourth quarter of 2024, the acquired lease will be renamed CVOW-South. Dominion anticipates launching CVOW-South and integrating it into its transmission grid by the 2030s, delivering sufficient power to serve 200,000 homes and businesses.
Dominion's subsidiary, Virginia Electric and Power Company, is concurrently constructing the 2.6-GW CVOW project approximately 25 miles north of the CVOW-South lease, slated for completion by the end of 2026.
In a statement on Monday, Dominion highlighted that work on the CVOW project is progressing on schedule and within budget, with 25 monopiles already installed.
