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Dominion (D) Progresses Virginia Offshore Wind Commercial Project
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Dominion Energy Inc’s (D - Free Report) announced that its Coastal Virginia Offshore Wind (CVOW) commercial project reached a regulatory milestone after the Bureau of Ocean Energy Management completed its environmental analysis of the 2.6-gigawatt (GW) project planned off the Virginia Beach coast.
The completion of environmental review reaffirms the company's trust in the success of the project. This gives Dominion and its partners the incentive to stay focused on completing the project on time and under budget.
D proposes to construct 176 wind turbines with a capacity of 14.7 megawatt (MW), as well as three off-shore substations in a commercial lease area covering 112,800 acres situated 27 miles from the Virginia Beach coastline.
Rationale Behind the Initiative
The Final Environmental Impact Statement (EIS) takes into account the input received from Tribal Nations and ocean users, as well as from local communities, offshore wind industry and other stakeholders, and evaluates the potential environmental effects and mitigation measures related to CVOW’s construction. The notice of availability for the final EIS will be published in the Federal register on Sep 29, 2023.
CVOW is among several offshore wind project currently under construction in the United States and is expected to produce enough clean, zero-emission electricity to power 660,000 homes in Virginia and provide more than $3 billion in cost savings for customers over the first decade of operation.
The EIS takes into account public comments, as well as in-depth studies, assessments and designs to maximize CVOW’s environmental benefits and minimize potential impacts. These include offshore measures to minimize impacts on marine life (e.g., North Atlantic right whale) as well as onshore measures to design and construct a transmission route to minimize the impact on natural and cultural resources as well as environmental justice communities.
Focus on Renewable Energy
Utilities in the United States are gradually shifting focus and concentrating more on clean energy sources like renewable energy to generate clean electricity. Wind and solar are the predominant sources of power generation in achieving the target of net zero emissions by 2050.
Offshore wind projects are expected to grow rapidly in the coming years as the turbines at sea make use of stronger winds. According to a report by the U.S. Department of Energy, the capacity of currently operating and under construction U.S. offshore wind energy projects increased 15% from the previous year’s level to 52,687 MW. When fully developed, these projects would be enough to power more than 18 million American homes.
Per a Precedence Research report, the global offshore wind energy market size was valued at $27.33 billion in 2021 and is expected to hit $129 billion by 2030, poised to witness a CAGR of 18.82% during 2022-2030.
Utilities’ Focus on Emission Reduction
Dominion is committed to achieve net-zero emissions by 2050. Its long-term objective is to add 24 GW of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years. By 2035, D also intends to make zero and low-emitting resources accountable for 99% of the company’s electric generation.
Along with Dominion, other electric power companies like Alliant Energy Corp. (LNT - Free Report) , Xcel Energy, Inc. (XEL - Free Report) and Avangrid Inc. (AGR - Free Report) also aim to lower emissions and become carbon neutral in the future.
Alliant Energy benefits from retiring coal-fired units, and adding clean assets to its portfolio to achieve its target of becoming carbon neutral by 2050. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth.
LNT’s long-term (three to five years) earnings growth rate is 6.47%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 2.5%.
Xcel Energy aims to lower emissions by at least 80% by 2030 and achieve carbon neutrality by 2050. After completing six wind projects with 1,500 MW capacity in 2020, the company completed four wind farms, adding another 800 MW of clean energy generation capacity to its portfolio. XEL’s total wind capacity is 11,000 MW, out of which 4,500 MW is from owned wind farms.
The company’s long-term earnings growth rate is 6.07%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 5.4%.
AVANGRID plans to create a clean generation portfolio and achieve Scope 1 and Scope 2 carbon neutrality goals by 2035. It plans renewable construction of 806 MW of offshore wind, 408 MW of solar and 106 MWs of onshore wind projects. The company has increased the presence of sustainable energy in Texas, where it currently produces more than 1,250 MW through six wind farms and has a pipeline of 1,300 MW projects.
AGR’s long-term earnings growth rate is 4.05%. The Zacks Consensus Estimate for 2023 sales implies a year-over-year improvement of 6.4%.
Price Performance
In the past three months, shares of Dominion have lost 8.8% compared with the industry’s 5.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
Dominion currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Dominion (D) Progresses Virginia Offshore Wind Commercial Project
Dominion Energy Inc’s (D - Free Report) announced that its Coastal Virginia Offshore Wind (CVOW) commercial project reached a regulatory milestone after the Bureau of Ocean Energy Management completed its environmental analysis of the 2.6-gigawatt (GW) project planned off the Virginia Beach coast.
The completion of environmental review reaffirms the company's trust in the success of the project. This gives Dominion and its partners the incentive to stay focused on completing the project on time and under budget.
D proposes to construct 176 wind turbines with a capacity of 14.7 megawatt (MW), as well as three off-shore substations in a commercial lease area covering 112,800 acres situated 27 miles from the Virginia Beach coastline.
Rationale Behind the Initiative
The Final Environmental Impact Statement (EIS) takes into account the input received from Tribal Nations and ocean users, as well as from local communities, offshore wind industry and other stakeholders, and evaluates the potential environmental effects and mitigation measures related to CVOW’s construction. The notice of availability for the final EIS will be published in the Federal register on Sep 29, 2023.
CVOW is among several offshore wind project currently under construction in the United States and is expected to produce enough clean, zero-emission electricity to power 660,000 homes in Virginia and provide more than $3 billion in cost savings for customers over the first decade of operation.
The EIS takes into account public comments, as well as in-depth studies, assessments and designs to maximize CVOW’s environmental benefits and minimize potential impacts. These include offshore measures to minimize impacts on marine life (e.g., North Atlantic right whale) as well as onshore measures to design and construct a transmission route to minimize the impact on natural and cultural resources as well as environmental justice communities.
Focus on Renewable Energy
Utilities in the United States are gradually shifting focus and concentrating more on clean energy sources like renewable energy to generate clean electricity. Wind and solar are the predominant sources of power generation in achieving the target of net zero emissions by 2050.
Offshore wind projects are expected to grow rapidly in the coming years as the turbines at sea make use of stronger winds. According to a report by the U.S. Department of Energy, the capacity of currently operating and under construction U.S. offshore wind energy projects increased 15% from the previous year’s level to 52,687 MW. When fully developed, these projects would be enough to power more than 18 million American homes.
Per a Precedence Research report, the global offshore wind energy market size was valued at $27.33 billion in 2021 and is expected to hit $129 billion by 2030, poised to witness a CAGR of 18.82% during 2022-2030.
Utilities’ Focus on Emission Reduction
Dominion is committed to achieve net-zero emissions by 2050. Its long-term objective is to add 24 GW of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years. By 2035, D also intends to make zero and low-emitting resources accountable for 99% of the company’s electric generation.
Along with Dominion, other electric power companies like Alliant Energy Corp. (LNT - Free Report) , Xcel Energy, Inc. (XEL - Free Report) and Avangrid Inc. (AGR - Free Report) also aim to lower emissions and become carbon neutral in the future.
Alliant Energy benefits from retiring coal-fired units, and adding clean assets to its portfolio to achieve its target of becoming carbon neutral by 2050. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth.
LNT’s long-term (three to five years) earnings growth rate is 6.47%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) implies a year-over-year improvement of 2.5%.
Xcel Energy aims to lower emissions by at least 80% by 2030 and achieve carbon neutrality by 2050. After completing six wind projects with 1,500 MW capacity in 2020, the company completed four wind farms, adding another 800 MW of clean energy generation capacity to its portfolio. XEL’s total wind capacity is 11,000 MW, out of which 4,500 MW is from owned wind farms.
The company’s long-term earnings growth rate is 6.07%. The Zacks Consensus Estimate for 2023 EPS implies a year-over-year improvement of 5.4%.
AVANGRID plans to create a clean generation portfolio and achieve Scope 1 and Scope 2 carbon neutrality goals by 2035. It plans renewable construction of 806 MW of offshore wind, 408 MW of solar and 106 MWs of onshore wind projects. The company has increased the presence of sustainable energy in Texas, where it currently produces more than 1,250 MW through six wind farms and has a pipeline of 1,300 MW projects.
AGR’s long-term earnings growth rate is 4.05%. The Zacks Consensus Estimate for 2023 sales implies a year-over-year improvement of 6.4%.
Price Performance
In the past three months, shares of Dominion have lost 8.8% compared with the industry’s 5.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
Dominion currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.