Hampton Roads, Virginia – Work has resumed on the Coastal Virginia Offshore Wind (CVOW) project, a 2.6-gigawatt undertaking spearheaded by Dominion Energy, following a court order allowing construction to proceed. The project, located approximately 27 miles off the Outer Banks, had been halted in December 2025 by a directive from the Trump administration citing national security concerns.
The legal battle initiated by Dominion Energy immediately after the suspension order has yielded positive results, with a U.S. District Court granting a preliminary injunction on , allowing work to restart while the lawsuit is resolved. Similar injunctions have been granted for four other stalled offshore wind projects along the East Coast.
However, the 26-day suspension has already taken a financial toll. Dominion Energy now estimates the total project cost at $11.5 billion, an increase of $700 million from the $10.8 billion estimate in May 2025. This includes $228 million directly attributable to the suspension and $580 million related to tariffs, according to a project update released on .
The project, formerly known as Kitty Hawk North, is designed to generate enough energy to power up to 660,000 homes, making it the largest offshore wind farm in the United States and one of the largest globally. Dominion Energy, which serves 3.6 million homes and businesses across Virginia, North Carolina, and South Carolina, views CVOW as a critical component of its energy supply strategy.
“It’s a terrible time to be restricting any source of new energy and especially sources of new clean energy that can be constructed in places that otherwise have limited ability to add new generation,” stated Katharine Kollins, president of the Southeastern Wind Coalition, emphasizing the importance of diversifying energy sources.
Dominion’s lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, argued that the company had proactively addressed potential concerns from military interests during the project’s development phase. The suit further contended that the Department of Interior lacked the authority to halt construction without a specific, justifiable trigger and that the government failed to provide such justification.
The legal filing asserted that “sudden and baseless withdrawal of regulatory approvals by government officials cannot be reconciled with the predictability needed to support the exceptionally large capital investments required for large-scale energy development projects.”
Cost recovery for the project is structured through an agreement with regulators. Costs exceeding $10.3 billion up to $11.3 billion are shared equally between the company and customers, while costs between $11.3 billion and $13.7 billion are borne entirely by Dominion Energy.
Currently, customers in Virginia pay approximately $11 per month to cover CVOW costs, though this figure is subject to annual review by the Virginia State Corporation Commission. The next filing for cost recovery is scheduled for October 2025.
As of late , construction was approximately 70% complete, with the first turbine already installed. All 176 monopole foundations have been installed, and 119 of the 176 transition pieces – connecting the foundations to the turbine towers – are in place. Two of the three offshore substations have been installed, and the deepwater export cables are complete. Installation of the nearshore export cables is about 60% complete, and approximately 67 miles of the 231 miles of inter-array cables have been laid.
Onshore electric transmission construction is expected to be finished by early 2026. While the original target for full operational capacity was the end of 2026, the project is now expected to be completed by early 2027.
Beyond the energy benefits, the CVOW project is projected to create 1,100 direct and indirect jobs annually in Hampton Roads, generating approximately $82 million in wages and benefits, $210 million in economic output, $6 million in local government revenues, and $5 million in state tax revenue.
The Trump administration’s opposition to offshore wind energy is reportedly rooted in personal objections to wind turbines near his golf course in Aberdeenshire, Scotland. He has repeatedly criticized wind energy as “expensive” and “ugly,” and has questioned its environmental benefits, despite evidence to the contrary.
While the administration cites national security concerns, critics point to the president’s long-standing animosity towards wind energy as the primary driver of the recent policy shift. The Audubon Society reports that building collisions and cats are the primary causes of bird deaths, not wind turbines, and that best practices can mitigate potential risks to wildlife.
Dominion Energy states it employs technologies to protect birds and other wildlife, including time-of-year restrictions, anti-perching devices, and acoustic monitoring.
The global offshore wind industry continues to evolve, with turbine technology rapidly advancing. According to Power magazine, the average capacity of turbines installed offshore in 2024 reached 10 MW, and units are now reaching 26 MW. Despite setbacks in the U.S., the industry is experiencing record growth globally.
“Offshore wind provides one of the only ways to build a significant amount of new energy generation in the near term,” Kollins said, highlighting the increasing demand for electricity and the lengthy timelines associated with constructing alternative energy sources like gas turbines and nuclear power plants. “These electrons are needed so badly.”
Dominion Energy stated it will continue to pursue a durable resolution through cooperation with the federal government while pressing forward with the CVOW project.
