Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project remains on track for completion by the end of 2026, despite encountering a moderate cost increase tied to recently implemented tariffs. The 2.6-gigawatt offshore wind initiative, which aims to be the largest of its kind in the U.S., is still expected to meet deadlines that allow it to qualify for valuable tax credits under the Inflation Reduction Act, the company confirmed during a Friday earnings call.

However, the utility now estimates the project will cost an additional $506 million due to tariff changes initiated under President Trump’s administration. This raises the total projected budget to $10.9 billion. Even with the higher price tag, customers will experience only a modest financial impact.

“The added expenses will increase customer bills by an average of three cents a month over the entire life of the project,” said Bob Blue, Dominion’s president, CEO, and chairman.

The utility has actually revised its estimates down slightly from previous quarters despite a doubling of the steel tariff.

Blue said this was “due to both working with vendors to identify cost mitigation strategies as well as completing our analysis of the final trade regulations and appendices.”

According to Blue, new tariffs targeting imports from Mexico and the European Union could tack on an additional $134 million, but he stressed that the company is actively pursuing ways to minimize those effects.

“The project fabrication and installation are going very well, and CVOW continues to be one of the most affordable sources of energy for our customers,” he said.

Dominion has made substantial progress on construction. As of now, 134 of the project’s 176 monopiles — or 76% — have been installed, along with all the necessary pin piles. The first turbine installation is scheduled for September, keeping the project aligned with its original timeline.

“In fact, we’re well ahead of plan, installing monopiles at a pace that exceeds any other U.S. offshore wind project to date,” Blue added.

However, not all aspects are moving ahead without challenge. The Charybdis, the first Jones Act-compliant offshore wind turbine installation vessel in the U.S., experienced a delay due to finalizing its internal communications systems. Originally scheduled to complete sea trials last month, the vessel is key to turbine installation efficiency.

“We had expected the vessel to complete sea trials last month, which would have enabled us to begin turbine installation ahead of schedule,” said Blue. He emphasized that Charybdis “eliminates the need for barges, which will be instrumental in helping us stay on track with turbine installation.” The vessel remains on budget at $715 million.

Blue also addressed the recently passed One Big Beautiful Bill Act, a sweeping legislative package that altered many of the IRA’s renewable energy incentives. Despite reductions to various clean energy credits, Dominion remains optimistic.

“We’re confident we can preserve all of the credits that we’ve provided in our forecast to investors, either through safe harboring or under long-standing rules,” Blue said.

He emphasized that only about 20% to 25% of Dominion’s clean energy portfolio will require active mitigation in response to the tax credit changes.

“And as I mentioned, we expect to be able to achieve that and have plans to do that,” he added.

Dominion’s continued momentum on CVOW highlights both the complexity and resilience of major offshore wind projects, especially as they navigate shifting trade policies and supply chain constraints. With monopile installation progressing faster than any other U.S. offshore wind project and tax credits still within reach, the company remains confident in its timeline and cost recovery strategy.

Originally reported by