Sept 4 Dominion Resource's Virginia Power
unit said on Wednesday it won the U.S. federal auction to lease
and develop a wind farm on nearly 112,800 acres off the coast of
Dominion said it bid $1.6 million to win the lease auction
after six rounds. Only two of eight eligible firms participated
in the bidding, Dominion said.
"Offshore wind has the potential to provide the largest,
scalable renewable resource for Virginia if it can be achieved
at reasonable cost to customers," said Mary C. Doswell,
Dominion's senior vice president for alternative energy
solutions, in a statement.
Wednesday's auction was the second held by the U.S.
Department of Interior's Bureau of Ocean Energy Management
(BOEM). The agency auctioned an area offshore Rhode Island and
Massachusetts in July.
BOEM said the Virginia area is 23.5 nautical miles (43.5 km)
from the Virginia Beach coastline and has the potential to
support more than 2,000 megawatts of wind generation - enough
electricity to power about 700,000 homes.
"We will now proceed with the BOEM timetable for development
of the commercial wind energy area while advancing our research
proposal and looking for ways to lower the cost of bringing
offshore wind generation to customers," Doswell said.
A team including Dominion was one of seven projects selected
to receive $4 million each in federal matching funds to
undertake initial engineering, design, and permitting for a
demonstration facility of two, 6-megawatt turbines with a goal
of finding ways to lower costs of offshore wind, the company
The U.S. Energy Department will choose up to three of the
projects to move forward with an operating deadline of late
BOEM auctioned the Virginia offshore area as a single lease.
Other eligible bidders were:
- Apex Virginia Offshore Wind LLC
- Energy Management Inc
- Electricite de France SA's EDF Renewable Development
- Fisherman's Energy LLC
- Iberdrola SA's Iberdrola Renewables Inc
- Sea Breeze Energy LLC
- Orisol Energy U.S. Inc