Powering Up the Future: Dominion Energy Acquires Lease for 800 MW Offshore Wind Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
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Source: Benzinga
- Acquisition of Offshore Wind Lease: Dominion Energy's subsidiary, Virginia Electric and Power Company, is acquiring the Kitty Hawk North Wind offshore wind lease (CVOW-South) from Avangrid for $160 million.
- Transaction Details: The acquisition includes $117 million for the lease acquisition and $43 million for development cost reimbursement to Avangrid.
- Offshore Wind Generation: CVOW-South is expected to generate 800 MW of offshore wind capacity by the 2030s, providing electricity for 200,000 homes and businesses.
- Project Progress: The CVOW project, located 25 miles north of CVOW-South, is on track for completion by late 2026 with 25 monopiles installed as of May 22, 2024.
- Future Plans: Dominion Energy aims to pursue a regulated offshore wind development model in Virginia for future projects, with the transaction expected to close in the fourth quarter of 2024 pending approvals.
Analyst Views on D
Wall Street analysts forecast D stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for D is 64.36 USD with a low forecast of 59.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 59.930
Low
59.00
Averages
64.36
High
70.00
Current: 59.930
Low
59.00
Averages
64.36
High
70.00
About D
Dominion Energy, Inc. provides regulated electricity service to about 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. It is a developer and operator of regulated offshore wind and solar power and the producer of carbon-free electricity in New England. Its Dominion Energy Virginia segment is composed of Virginia Power’s regulated electric transmission, distribution, and generation operations, which serve homes and businesses in Virginia and North Carolina. Its Dominion Energy South Carolina segment consists of DESC’s generation, transmission, and distribution of electricity to customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to residential, commercial and industrial customers in South Carolina. Its Contracted Energy segment includes non-regulated electric generation fleet and renewable natural gas operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
