Dominion Energy has revised the cost estimate for its Coastal Virginia Offshore Wind (CVOW) project due to new US tariffs, as outlined in its third-quarter 2025 results.
The updated total capital cost for the 2.6 GW offshore wind farm is now approximately USD 11.2 billion (EUR 9.7 billion), up from USD 10.9 billion (EUR 9.5 billion). This increase accounts for the impact of recently imposed federal tariffs on imported construction materials and components.
This marks an additional financial burden following an earlier announcement this year, where Dominion reported a project cost increase of about 9%.
As per Dominion’s Q3 2025 results, released on October 31, the revised estimate includes USD 443 million (EUR 385 million) in actual and projected tariff costs. This amount reflects the impact of new federal tariffs introduced in 2025 on internationally sourced materials and equipment for the project.
Consumers can expect an estimated impact of an additional USD 0.63 (EUR 0.55) on their bills.
Dominion assured that the tariff-adjusted project cost stays within its approved prudency threshold and that customer protection measures under Virginia’s regulatory framework remain intact.
The tariffs entail a 30% duty on imports from Mexico, 35% on those from Canada, 50% on the steel material value, and a 15% general tariff on goods from the European Union and other countries. Dominion emphasized that there is no “stacking” of tariffs on steel-related imports. These tariffs have been factored into updated procurement assumptions for offshore wind components and construction materials.
Under its cost-sharing arrangements, Dominion Energy estimates its exposure to tariff costs could range from USD 35 million (EUR 30 million) to USD 218 million (EUR 189 million), depending on how tariffs are applied and reimbursed under approved regulatory mechanisms. The remainder would be shared with project partners and through regulated recovery structures.
Dominion Energy co-owns CVOW with Stonepeak, which acquired a 50% noncontrolling interest in the project last year.
Despite tariff impacts, Dominion’s latest financial results indicate that the CVOW project, the largest US offshore wind farm, remains on track. Construction is approximately 66% complete, with first power generation expected in the first quarter of 2026 and full commercial operation by the end of that year.
The Coastal Virginia Offshore Wind project, located 43 kilometers (27 miles) off Virginia Beach, will feature 176 wind turbines.
Original Story at www.offshorewind.biz