Dominion to Sell 50% Stake in Virginia Off-Shore Wind Farm

Dominion Energy, a Virginia-based utility company, has agreed to sell a 50% non-controlling stake in its approximately $10 billion Coastal Virginia Offshore Wind project to infrastructure-focused private equity firm Stonepeak for $3 billion, which covers half of the project’s development expenses.

The companies would be partners in a newly created public utility that would be a subsidiary of Dominion Energy. Dominion Energy will retain complete operational control over the wind firm’s construction and operation, with the two companie splitting costs.

The wind farm, which will be constructed offshore near Virginia Beach, will be one of the largest projects completed in the U.S. The plan includes for 176 turbines and three offshore substations on a lease area of almost 113,000 acres. When completed in late 2026, it will have the capacity to generate 2.6 GW.

Dominion earlier announced that the first components of the wind farm were already being staged in Virginia, with major contracts awarded for the project, which they report is still on track and within budget.

“This transaction achieves several key objectives including: (1) adding an attractive, well-capitalized, and high-quality partner; (2) establishing robust cost-sharing that provides meaningful protection from any unforeseen project cost increases; and (3) improving our quantitative and qualitative business risk profile through the creation of a highly credit-positive partnership,” said Robert M. Blue, Dominion Energy chair, president and CEO.

The transaction is the latest in a string of notable private equity investments in the US offshore wind sector. Last week, Eversource Energy agreed to sell a 50% ownership in both the South Fork Wind farm, which is nearing completion, and the planned Revolution Wind to Global Infrastructure Partners for around $1.1 billion.