Dominion Virginia Power told the federal government on March 19 it is interested in obtaining leases off the Virginia coast in an area that has the potential to generate 1,500 to 2,000 MW of electricity from offshore wind turbines.
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.
Dominion said the U.S. Energy Information Administration projects the cost of offshore wind generation in 2016 at approximately 24 cents per kWh generated. This is a premium over the 7.3 cents per kWh that comprise the generation portion of Dominion Virginia Power's residential rate today of about 10.9 cents per kWh.
Dominion has received a two-year, $500,000 grant from the U.S. Department of Energy with a goal to find ways to reduce the cost of offshore wind generation by 25 percent.
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.