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Dominion Challenges BOEM Stop-Work Order as CVOW Costs Mount

CVOW construction halt, BOEM stop-work order, Dominion Energy TRO, US offshore wind pause, national security review offshore wind
Rendering of Dominion Energy’s newbuild WTIV Charybdis under construction at Keppel AmFELS, Texas. (Image: Dominion Energy)

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A federal judge in Norfolk will hear an emergency request on 29 December 2025 after Dominion Energy Virginia asked the court to immediately block a Bureau of Ocean Energy Management (BOEM) stop-work order that has frozen offshore construction on the Coastal Virginia Offshore Wind (CVOW) project.

In its filing, Dominion Energy Virginia says the suspension is already driving more than $5 million per day in vessel-related costs, with additional exposure from idle crews, equipment laydown, and schedule knock-on effects. The company argues that offshore installation sequencing leaves little slack, meaning short interruptions can cascade into materially higher overall costs.

The lawsuit arrives amid a broader federal pause on five East Coast offshore wind developments while the US Department of the Interior reviews national security questions, including whether turbine blades and towers could affect radar performance. BOEM has outlined a 90-day review period and indicated the timeline could be extended.

CVOW, located roughly 27–44 miles off Virginia, is designed for up to 2,600 MW of capacity—an output Dominion has said could supply electricity to about 660,000 homes once fully commissioned. The developer has previously stated the project is around 50% complete and was targeting first power in early 2026.

The court filing also positions CVOW as a reliability asset as Virginia’s electricity demand rises, pointing to major load growth tied to military facilities, shipbuilding activity, and data centers supporting artificial intelligence and cloud computing.

Cost recovery is another focal point. Dominion disclosed spending of about $8.9 billion, described as more than two-thirds of the project’s expected total, with certain costs already being recovered from customers under a regulatory arrangement approved by Virginia regulators. The company warns that prolonged work stoppages could increase the final bill.

BOEM’s stop-work order applies beyond Virginia, affecting Vineyard Wind 1 (Massachusetts), Revolution Wind (Rhode Island/Connecticut), and New York projects Sunrise Wind and Empire Wind 1—raising wider concerns across port logistics, heavy-marine transport scheduling, and contractor utilization along the coast.

Separately, Virginia stakeholders have pointed to the withdrawal of nearly $39.3 million in federal funding tied to a planned Norfolk offshore wind logistics port, a facility linked to long-term staging and operations support for regional offshore wind activity.

If the court does not grant immediate relief through a temporary restraining order, Dominion Energy Virginia has indicated it will pursue a preliminary injunction as the case proceeds.

Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
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