Dominion Energy’s Coastal Virginia Offshore Wind project, the largest planned offshore wind farm in the United States, will cost nearly $300 million more than previously estimated after PJM Interconnection raised network upgrade charges, Trump-era tariffs increased equipment costs, and turbine installation projections were revised upward.
The PJM cost reallocation reflects a growing friction point for East Coast offshore wind: as more projects queue for interconnection, the transmission reinforcements required to deliver power to load centers are becoming more expensive and less predictable. Dominion’s 2.6-gigawatt project, slated for completion in 2026, must now absorb a larger share of those regional upgrades, a dynamic that will likely recur for other developers in the PJM footprint.
Tariffs imposed in April on imported steel, electrical components, and other critical materials have compounded the pressure. While the administration framed the measures as industrial policy, the immediate effect has been to raise capital expenditures for projects already navigating tight supply chains and inflationary labor markets. For a project of this scale, even modest percentage increases on major equipment categories translate into nine-figure cost shifts.
The revised turbine installation projections underscore a broader industry trend: as developers move from permitting into construction, real-world logistics — vessel availability, weather windows, seabed conditions — often force schedule and cost adjustments. Dominion’s experience will be closely watched by regulators, ratepayers, and the half-dozen other utility-scale projects in various stages of development along the Atlantic coast, all of which face similar interconnection, supply chain, and execution risks.
Read the full report at Utility Dive.