Dominion Energy's Virginia offshore wind farm costs rise 9%

Feb 3 (Reuters) - U.S. utility firm Dominion Energy D.N said on Monday estimated project costs for its Coastal Virginia offshore wind farm have increased about 9% to $10.7 billion due to higher network upgrade expenses.

The roughly 2,600-megawatt (MW) project consists of 176 turbines, each designed to generate 14.7 MW. Located about 27 miles (43.5 kilometers) off the coast of Virginia Beach, it is expected to be the largest offshore wind farm in the United States.

Higher network upgrade cost are estimated by PJM, the local electric grid operator, to reflect the significant increase in demand growth that require incremental generation and transmission resources across the system, Dominion said.

The nascent U.S. offshore wind industry has struggled with soaring costs, canceled projects and a high-profile construction accident. President Donald Trump has also cast doubts on the industry's future after he suspended new federal offshore wind leasing pending an environmental and economic review.

Dominion said the network upgrades do not impact project construction or timeline and the company remains on track for on-time completion at the end of 2026.