Virginia residents have already paid billions in electric bills to fund the states’ long-awaited offshore wind project. They may now have to shell out more.
The $11.2 billion Coastal Virginia Offshore Wind venture, originally projected to begin coming online off Virginia Beach early this year, is facing a 90-day pause instituted in December by the Trump administration. Four projects in other states, also far along in development, were halted as well.
The delay will likely result in costs to consumers as Dominion scrambles to find alternative sources of energy to meet demand, likely natural gas.
The feds cited “national security” concerns including radar interference, but that claim is disputed by the project lead, utility company Dominion Energy, as well as policy experts including Paul Bledsoe, a climate and energy advisor under the Clinton administration.
“It’s a flimsy, made up pretext,” Bledsoe said. “There’s no national security risk. It’s just not true.”
The delay will likely result in more costs to consumers as Dominion scrambles to find alternative sources of energy to meet demand, likely natural gas, he said.
Virginia Del. David Reid, who represents part of Loudoun County, said this infrastructure is key to keeping up with energy needs.
“Resuming the [offshore wind] project is a key national security imperative to ensuring electricity affordability, maintaining the shipbuilding pace at Newport News Shipbuilding and maintaining our national leadership in the world’s highly connected, modern economy,” Reid told Technical.ly.
The delay will likely result in more costs to consumers as Dominion scrambles to find alternative sources of energy to meet demand, likely natural gas, Bledsoe said.
“Trump is shutting down facilities that Virginia ratepayers have already paid for,” he said.
This is also costing Dominion $5 million per day due to an idle workforce and paying for unused equipment, per the lawsuit. The money to make up the shortfall will likely come from electric customers, per Bledsoe.
Leaders of states with the other paused wind developments also anticipate rates going up for consumers.
“Pausing active leases, especially for completed and nearly completed projects,” several governors wrote in a joint statement, “defies logic, will hurt our bid for energy independence, will drive up costs for America ratepayers, and will make us lose thousands of good-paying jobs.”
In Virginia, electricity costs have already climbed over the last few years, in part because of data center energy demands. The average resident’s monthly bill is expected to increase by $13 by 2028.
Enough power for 660,000 households, now delayed
After the administration implemented the 90-day pause, Dominion immediately filed a complaint, claiming the Department of Interior has “no rational basis” for the action and that its grounds are “arbitrary and capricious.” The utility underwent years of review with this development, its complaint says, including to address national security concerns like radar interference.
“[Department of Interior’s] illegal order is causing serious, irreparable harm to [Dominion] and its
customers, and must be immediately, and then permanently, vacated and enjoined,” the Dec. 23 complaint reads.
Bledsoe, the former climate and energy advisor, agrees. The Coastal Offshore Wind build is projected to be able to power the equivalent of approximately 660,000 households — including the state’s massive data center buildout.
Dominion and state leaders have been citing concerns about data center power demands for years. In Loudoun County, a hub for the infrastructure, there are about 200 data centers with 117 set to be built, according to an October board of supervisors report.
What could happen next?
House Speaker Mike Johnson in the fall expressed his support for the Virginia offshore wind project, defying Trump sentiment as the administration pushed to cancel that work since his first days in office.
“[The pause is] just a nightmare for the state,” Bledsoe said, “and there’s no reason for it except Trump’s irrational vendetta against wind energy.”
He predicts the pause will have political implications in the state, especially with midterm elections later this year. Virginia has 11 House representatives — Republicans currently have five seats, and Democrats have six.
A District Court hearing on Dominion’s complaint is set for next Friday, Jan. 16, following a delay requested by the federal government.
Bledsoe has some optimism about the case, though. A federal judge struck down Trump efforts to block wind energy developments in December before this pause. That could mean the same action could happen for this situation, he said.
“I think a lot of people are hopeful,” Bledsoe said, “that the courts will begin to stand up to these just incredibly reckless and arbitrary attempts to increase consumer prices.”
