Dominion Virginia Power Expresses Interest In Coastal Area Designated For Offshore Wind Generation

RICHMOND, Va., March 19, 2012 /PRNewswire/ -- Dominion Virginia Power told the federal government today that it is interested in obtaining leases off the Virginia coast in an area that has the potential to generate approximately 1,500-2,000 megawatts of electricity from offshore wind turbines. The exact capacity would be dependent on detailed site investigations.

Dominion expressed its interest in the entire 113,000 acres the government is making available approximately 24 miles off the Virginia coast in its response to the Bureau of Ocean Energy Management (BOEM)'s Call for Information and Nominations that was issued Feb. 3.

"Offshore wind generation holds great promise in the long term as a scalable source of emissions-free renewable electricity," said Mary C. Doswell, executive vice president-Alternative Energy Solutions. "Virginia is well positioned to accommodate offshore wind with the existing electric grid and world-class port facilities in Hampton Roads. The challenge remains the high cost of building this generation and bringing it to customers."

The U.S. Energy Information Administration projects the cost of offshore wind generation in 2016 at approximately 24 cents per kilowatt-hour generated. This is a significant premium over the 7.3 cents per kilowatt-hour that comprise the generation portion of Dominion Virginia Power's residential rate today of about 10.9 cents per kilowatt-hour.  

The company has received a two-year, $500,000 grant from the U.S. Department of Energy with a goal to find innovative ways to reduce the cost of offshore wind generation by 25 percent.

As with any utility generating project, the Virginia State Corporation Commission would have to approve any Dominion Virginia Power offshore wind power generation project.

If awarded a lease, Dominion said it would conduct detailed site assessment activities, including the erection of a meteorological tower to study wind strength and patterns.

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