The U.S. Interior Department has named Dominion Virginia Power, a subsidiary of Dominion, the winner of the second U.S. competitive lease auction for offshore wind power project sites, with a bid of $1.6 million.
Although eight companies were approved to bid, only Dominion Virginia and Apex Virginia Offshore Wind LLC competed in the six-round auction conducted by the Bureau of Ocean Energy Management (BOEM).
The auction was for the use of 112,799 acres on the Outer Continental Shelf approximately 23.5 nautical miles off Virginia Beach. According to the Interior Department, the site has the potential to support 2,000 MW of wind power generation.
Dominion Virginia Senior Vice President-Alternative Energy Solutions said the company will now proceed with the BOEM timetable to develop the area while continuing its research proposal and looking for ways to lower the cost of bringing offshore wind power to customers.
The lease has a preliminary term of six months to submit a Site Assessment Plan to BOEM for approval. Once the plan is approved, Dominion Virginia will have 4.5 years to submit a Construction and Operations Plan for approval. If that is approved, Dominion Virginia will have an operations term for 33 years.
BOEM is expected to announce additional auctions for offshore wind power sites later this year and in 2014. Future sites are expected to be located offshore Maryland, New Jersey and Massachusetts.