WASHINGTON — Dominion Virginia Power says it is assessing its options for an offshore wind power project after the Department of Energy withdrew $40 million in funding for it.
The projected costs for the wind turbine project have swelled from $230 million to estimates of as much as $380 million, and Dominion Virginia was unable to guarantee a project completion date before 2020.
Dominion Virginia’s wind turbine project was one of three chosen for Department of Energy funding in 2014. At the time it was awarded the funding, Dominion Virginia predicted the project would be generating power by 2017.
If Dominion and its partners proceed, the wind demonstration project would include two advanced-technology wind turbines installed in federal waters 24 miles off the coast of Virginia Beach. If built, it would generate enough electricity to power up to 3,000 homes at peak.
The demonstration project would be directly adjacent to the commercial area Dominion is leasing from the Bureau of Ocean Energy Management. The demonstration project is intended as a precursor to a much bigger wind farm there.
Dominion Virginia says it will consult with project partners before deciding on its next step.
The project, called the Virginia Offshore Wind Technology Advancement Project, also includes wind turbine maker Alstom Power Inc., construction and engineering firm KBR and Newport News Shipbuilding.
