Dominion Energy announced a 90‑day pause on its Coastal Virginia Offshore Wind (CVOW) project, a 2.6 GW offshore wind asset that would be the largest of its kind in the United States. The pause, issued by the U.S. Department of the Interior on December 22, 2025, is intended to address national‑security concerns about radar interference from turbine blades and towers.
The Department of the Interior cited classified defense reports that the project’s turbines could create radar clutter, obscuring legitimate targets and generating false ones. Dominion argues that the project is located far offshore, that its five‑year‑old pilot turbines have operated without incident, and that the wind farm is essential for Virginia’s growing energy needs, military installations, and data‑center sector. The company warned that a delay would threaten grid reliability, drive energy inflation, and jeopardize thousands of jobs.
The pause directly pushes back the project’s commercial power‑generation target, originally slated for late Q1 2026. With the project 66 % complete and an estimated cost of $11.2 billion, the delay also postpones capital deployment, revenue recognition, and cost recovery under Dominion’s regulatory framework. Full completion is now expected by the end of 2026.
The regulatory action is part of a broader pause on five large‑scale offshore wind projects on the East Coast, reflecting heightened scrutiny under the Trump administration despite a recent federal judge striking down a prior executive order that blocked wind projects. Dominion’s counterarguments highlight the project’s national‑security importance and its track record of safe operation.
Market reaction was swift: Dominion’s shares fell as much as 5.8 % at one point and remained down 5.4 % at 12:32 p.m. ET, underscoring investor concern about the project’s delay and its potential impact on the company’s offshore wind strategy.
Financially, Dominion had narrowed its full‑year 2025 operating‑earnings guidance to $3.33–$3.48 per share. The pause could affect future revenue recognition and capital deployment, potentially influencing the company’s guidance and investor sentiment moving forward.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.