Jan 19, 2026 (MarketLine via COMTEX) --
The legal ruling enables Dominion Energy to restart offshore wind construction while its lawsuit against a federal agency continues.
The US District Court for the Eastern District of Virginia has granted Dominion Energy permission to continue construction on the 2.66GW Coastal Virginia Offshore Wind (CVOW) project after issuing a preliminary injunction.
This decision allows Dominion Energy to resume work on the project while its legal case against a federal agency action remains ongoing.
The CVOW project, situated approximately 27 miles off the coast of Virginia Beach in a federal lease area on the Outer Continental Shelf, is set to feature 176 offshore wind turbines.
Once operational, it is estimated it will meet the electricity requirements of up to 660,000 homes.
The commercial-scale installation builds upon an initial pilot project consisting of two turbines, which began operation in October 2020.
Construction on the onshore transmission infrastructure started in late 2023, with offshore development following in early 2024. Project completion is scheduled for late 2026.
More than 800 workers based in Virginia are currently engaged in various aspects of the development, and over 1,000 local jobs are expected to support ongoing maintenance and operations once the facility becomes fully functional.
Dominion Energy has stated its intention to continue pursuing a resolution with federal authorities while maintaining its legal case.
The company expects CVOW to contribute to its energy diversification strategy across multiple sources including renewable and traditional power generation.
It projects that CVOW will provide fuel cost savings totalling $3bn during its first decade of operation.
In addition to energy supply benefits, the project is expected to generate economic activity in the region by attracting manufacturing and service businesses linked to offshore wind development.
Local and state governments anticipate increased tax revenues as a result of this economic output.
Environmental considerations have played a role throughout the projectaEUR(TM)s approval process, which included public meetings and consultations with environmental groups, tribal nations, fishing interests and other stakeholders.
The Bureau of Ocean Energy Management granted final construction authorisation in 2024 after the completion of environmental assessments involving multiple federal agencies.
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