February 24, 2024 — Dominion Energy has agreed to sell half of its planned Coastal Virginia Offshore Wind project in a move the company reports is designed to reduce its risk profile as the giant wind farm moves into construction. The company will sell a 50 percent noncontrolling interest in a newly formed partnership to Stonepeak, one of the leading U.S. private equity firms that is focused on infrastructure.
Under the terms of the agreement, which requires regulatory approval, the companies would be partners in a newly created public utility that would be a subsidiary of Dominion Energy. The company reports it expects to receive approximately $3 billion representing half the construction costs of the wind farm. Dominion Energy will retain full operational control for the construction and operation of the wind firm with the two companies sharing in the costs.
The Coastal Virginia Offshore Wind farm has completed its permitting and is approved to begin construction which is projected to cost approximately $10 billion. Dominion previously reported that the first components of the wind farm were already being staged in Virginia with the major contracts awarded for the project which they report remains on schedule and budget. There are provisions in the agreement for cost overruns above $11.3 billion.