Dominion Energy said in its third-quarter 2025 results that recently imposed US tariffs have been incorporated into the updated cost estimate for the Coastal Virginia Offshore Wind (CVOW) project.
The company now places total capital costs for the 2.6 GW offshore wind farm at approximately USD 11.2 billion (approximately EUR 9.7 billion), up from about USD 10.9 billion (approx. EUR 9.5 billion) previously. The increase reflects the impact of newly imposed federal tariffs on imported materials and components used in construction.
This comes as an additional financial impact after Dominion’s announcement from earlier this year, when the developer reported the first project cost increase of around 9 per cent.
According to Dominion’s Q3 2025 results, issued on 31 October, this updated figure includes an estimated USD 443 million (approx. EUR 385 million) of actual and forecast tariff costs. The project’s developer noted that this amount reflects the impact of new federal tariffs introduced in 2025 and applies to materials and equipment sourced internationally for the project.
The impact on consumer bills is estimated to be an additional USD 0.63 (EUR 0.55).
Dominion stated that the tariff-adjusted project cost remains within its approved prudency threshold and that customer protections established under Virginia’s regulatory framework remain in place.
The tariffs in question include a 30 per cent tariff on imports from Mexico, 35 per cent on Canada, 50 per cent on steel material value, and a 15 per cent general tariff on goods imported from the European Union and other countries. Dominion clarified that no “stacking” of tariffs applies to steel-related imports. These measures, Dominion said, were incorporated into updated procurement assumptions for offshore wind components and construction materials.
Under its cost-sharing arrangements, Dominion Energy estimates that its own exposure to tariff costs could range between USD 35 million (approx. EUR 30 million) and USD 218 million (approx. EUR 189 million), depending on how those tariffs are applied and reimbursed under approved regulatory mechanisms. The remainder would be subject to cost-sharing with project partners and regulated recovery structures.
Dominion Energy owns CVOW together with Stonepeak, which acquired a 50 per cent noncontrolling interest in the 2.6 GW offshore wind farm last year.
In its latest financial results, Dominion also provided a project update for what will become the biggest US offshore wind farm, saying that despite the tariff impacts, the CVOW project remains on schedule. Dominion reported that construction is around 66 per cent complete and reiterated its target for first power generation in the first quarter of 2026, with full commercial operation expected by the end of that year.
The Coastal Virginia Offshore Wind project is being built 43 kilometres (27 miles) off the coast of Virginia Beach and will consist of 176 wind turbines.
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