PORTSMOUTH, Va. (WAVY) — The ambitious Coastal Virginia Offshore Wind project, poised to be the largest of its kind in the United States, is currently two-thirds complete. However, Dominion Energy, the project’s developer, is grappling with challenges that threaten its commitment to delivering the project both on time and within budget. These challenges primarily stem from escalating tariffs and complications with their newly acquired ship.
During an earnings call with investors on Halloween, Dominion Energy’s Chairman, President, and CEO, Bob Blue, shed light on the hurdles the project is facing. He explained that the imposition of steel tariffs has led to a significant increase in the overall cost of the wind farm. Originally budgeted at a lower amount, the project’s cost has now surged to $11.9 billion, representing a more than 21% rise from its initial projections.
Further complicating matters, the timely completion of the wind farm is under threat due to delays with the Charybdis, a $715 million turbine installation vessel. Blue expressed concerns that the vessel is still not ready to begin operations, casting doubt on the timeline for bringing this new power source online.
