Dominion Energy’s $1.47 billion natural gas plant proposal in Chesterfield County has received approval from the State Corporation Commission (SCC). This project, known as the Chesterfield Energy Reliability Center (CERC), is intended to address the rising energy demands in Virginia and awaits an air permit from the Virginia Department of Environmental Quality, expected later this month.
Despite the Virginia Clean Economy Act (VCEA) encouraging renewable energy transitions, the SCC approved the first of several fossil-fuel-based plants proposed by Dominion. The upcoming plant is set to become operational in 2029, with demand driven by data centers in the state, which in 2025 saw summer peak demand near 24 gigawatts, according to a report.
SCC judges acknowledged the need for new resources to prevent reliability threats. Dominion CEO Bob Blue highlighted potential contracts that may require 47 gigawatts in the coming years. Dominion argues that current renewable alternatives do not meet immediate needs, proposing the gas plant to ensure grid reliability during peak times, a provision allowed under the VCEA.
The proposed 944-megawatt plant would feature four combustion turbines on a former coal site at Chesterfield Power Station. While four coal units were retired by June 2023, the new gas plant aims to provide quick-response capabilities, activating within 10 to 15 minutes during high demand.
Critics argue that Dominion’s focus on natural gas hampers progress toward clean energy, citing concerns over renewable project reliability. The plant’s approval has drawn criticism from environmental and ratepayer advocates who claim Dominion inflates renewable risks.
Virginia has become a global data center hub, amplifying energy needs. However, Dominion’s proposal has received pushback for potentially undercutting renewable momentum. Local opposition includes advocacy groups and elected officials who challenge the regional grid operator PJM Interconnection’s role in delaying renewable projects.
PJM is scrutinized for allegedly allowing data center loads that exceed reliable service capacity, potentially leading to blackouts. PJM’s critics claim these decisions elevate electricity costs, a concern noted in a formal complaint to the Federal Energy Regulatory Commission.
Despite the SCC’s decision noting increasing demand pressures, community members continue to challenge Dominion’s plans. There is significant concern over whether renewable energy alternatives and associated technologies, such as battery storage, were fairly considered in the evaluation process.
Dominion expressed optimism about the project, emphasizing its role in ensuring regional power reliability. Critics, however, argue that Dominion prioritizes its interests over environmental and social welfare.
Community leaders, such as Chesterfield’s NAACP president, Nicole Martin, have voiced strong opposition, criticizing the decision for prioritizing profits over public health. Advocacy groups contend that Dominion’s failure to meet energy savings targets and the exclusion of clean technology considerations show a disregard for alternative solutions.
The SCC decision has reignited calls for revisiting the VCEA to better align with Virginian interests. While some lawmakers support gas plant construction, others urge regulatory changes to accelerate renewable energy adoption and include battery implementation.
The ongoing debate highlights the tension between economic growth driven by data centers and the pursuit of sustainable energy solutions. As Virginia navigates these challenges, the outcome will impact the state’s energy trajectory and broader environmental goals.
Original Story at insideclimatenews.org