Dominion Virginia Power Wins Federal Offshore Wind Auction
- Company wins auction in sixth round with bid of $1.6 million
- Lease is for 112,800 acres about 27 miles off the coast of Virginia
RICHMOND, Va., Sept. 4, 2013
RICHMOND, Va., Sept. 4, 2013 /PRNewswire/ -- Dominion Virginia Power, a
subsidiary of Dominion (NYSE: D), today bid $1.6 million to win the lease for
112,800 acres of federal land off the coast of Virginia to develop an offshore
wind turbine farm capable of generating up to 2,000 megawatts of electricity,
enough for 700,000 homes.
The federal Bureau of Ocean Energy Management (BOEM) conducted the auction.
Eight companies, including Dominion, were approved to bid, but only two firms
participated. The auction lasted six rounds.
"Offshore wind has the potential to provide the largest, scalable renewable
resource for Virginia if it can be achieved at reasonable cost to customers,"
said Mary C. Doswell, senior vice president-Alternative Energy Solutions. "We
will now proceed with the BOEM timetable for development of the commercial
wind energy area while advancing our research proposal and looking for ways to
lower the cost of bringing offshore wind generation to customers."
BOEM has several milestones that Dominion must meet to keep the lease with the
final milestone being the submittal of a Construction and Operations Plan
within five years of signing the lease. Once BOEM has the plan, it has an
undetermined amount of time to perform an environmental analysis and approve
the plan. Dominion expects the first turbine to be installed in about 10 years
pending project approval by state regulators.
Others that BOEM had approved to bid were Apex Virginia Offshore Wind LLC of
Charlottesville, Va; Energy Management Inc. of Boston; EDF Renewable
Development Inc. of San Diego; Fishermen's Energy LLC of Cape May, N.J.;
Iberdrola Renewables Inc. of Portland, Ore.; Sea Breeze Energy LLC of
Philadelphia; and Orisol Energy U.S. Inc. of Ann Arbor, Mich.
Dominion is involved in other offshore wind research projects. Dominion and
its team was one of seven projects selected to receive $4 million each in
federal matching funds to undertake initial engineering, design, and
permitting for a demonstration facility of two six-megawatt turbines with a
goal of finding innovative ways to lower costs of offshore wind. The
Department of Energy will select up to three of the projects for follow-on
phases to move forward with the final design, permitting, and ultimate
construction of these demonstration projects. The projects must be in
operation by the end of 2017.
Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 23,500 megawatts of generation, 11,000 miles
of natural gas transmission, gathering and storage pipeline and 6,400 miles of
electric transmission lines. Dominion operates one of the nation's largest
natural gas storage systems with 947 billion cubic feet of storage capacity
and serves retail energy customers in 15 states. For more information about
Dominion, visit the company's website at www.dom.com.
Save time, energy and postage by enrolling in Dominion's eBill paperless
SOURCE Dominion Virginia Power
Contact: Jim Norvelle, (804) 771-6115
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