Dominion Energy, Inc. (NYSE: D), today announced that it has closed on a transaction to sell a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak. Dominion Energy will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights. The transaction was previously announced Feb. 22, 2024.

With this transaction, Dominion Energy has now successfully completed its business review debt reduction initiatives. During the review, the company announced transactions that represent approximately $21 billion of debt reduction. With the closings of the Cove Point LNG, East Ohio Gas, Questar Gas and Wexpro, and Public Service Company of North Carolina sales; and completion of the fuel securitization at Dominion Energy Virginia and the offshore wind partnership, Dominion Energy has now achieved 100% of the business review target. These actions have improved the company’s balance sheet, reduced its risk profile, and established a renewed focus as a pure-play, state-regulated electric utility business.

Robert M. Blue, Dominion Energy chair, president and chief executive officer, said:

“We are pleased to partner with Stonepeak on CVOW, which continues to proceed on-time and on-budget, consistent with our previously communicated timing and cost expectations. Stonepeak is one of the world’s largest infrastructure investors in large energy projects such as offshore wind, and its financial participation in CVOW will benefit both the project and the people who will rely on electricity from CVOW to keep the lights on and fuel economic growth in the Commonwealth.

” Rob Kupchak, senior managing director at Stonepeak, added:

“We are excited to have closed this investment in CVOW, which exemplifies many of the core tenets of essential infrastructure that we invest behind at Stonepeak. We look forward to continuing our partnership with Dominion Energy’s talented team to bring what promises to be one of the most impactful energy projects in the United States to commercial operation.

” The 2.6-gigawatt CVOW, the largest offshore wind farm currently under construction in the United States, is on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.

At closing, Dominion Energy received proceeds of $2.6 billion, representing reimbursement of approximately 50% of project-to-date capital investment. Stonepeak will fund 50% of remaining project costs as they are incurred, subject to certain conditions as previously disclosed

DNV is performing due diligence to enable the financing of eight offshore wind projects on the United States’ Atlantic Coast. The announcement follows news from DNV’s Energy Transition Outlook 2024 report, which forecasts that about 10 GW of fixed offshore wind is set to be installed in the U.S. between 2040 and 2050. While the industry has seen headwinds recently, and the latest Energy Transition Outlook has tempered its overall forecast for offshore wind, projects are still moving steadily forward, as reflected by the robust financing activity in the U.S. The offshore wind projects DNV is assessing collectively represent 13 GW of clean energy capacity, which would increase the U.S.’s total wind power capacity by nearly 9% if they become operational.

The technical due diligence DNV is providing to the financial stakeholders for these offshore wind projects is grounded in sound engineering judgement which is very important for developers, lenders and investors. This methodology is an evolution of the company’s proven approach that has enabled on-time financing for thousands of onshore wind, solar, transmission and battery energy storage projects in the U.S. and Canada.

DNV has also established local, in-house expertise around the intricacies of U.S. project finance and the structures that have emerged since the passage of the Inflation Reduction Act (IRA), such as transferability. Many stakeholders in the U.S. offshore wind industry are headquartered in Europe and rely upon DNV for its on-the-ground knowledge of the U.S. financing landscape. For these eight offshore wind projects, DNV is providing pre-commitment and construction monitoring due diligence to ensure all stakeholders understand the risks of the project prior to final investment decision and further capitalize on tax credit monetization opportunities from the IRA. These services are delivered within established financing mechanisms and  processes to ensure on-time closing.

“So far, three of the eight offshore wind projects we’re involved with have reached a final investment decision and the balance is making rapid progress towards this milestone. Our customers are now getting steel in the water and creating benefits for local communities,” said Richard S. Barnes, region president for Energy Systems North America. “We’ve learned that the offshore wind projects getting financed and moving into the development and construction stages are the ones where developers can hit narrow installation windows because they’ve identified and mitigated risks around vessel availability, supply chain, and evolving regulatory requirements.

” DNV’s U.S.-based offshore wind team enabled clients to succeed in California’s 2022 offshore auction, providing in-depth assessments of the technical, societal, and environmental risks around offshore wind development in Oregon and Maine, and are addressing barriers on behalf of the industry to accelerate the deployment of high voltage direct current (HVDC) technology. This regional team is backed up by a global network of experts that has assessed 50 GW of offshore wind energy.

“DNV uses our advisory expertise to help offshore wind projects increase performance and minimize risks. Success relies on understanding the dependencies between different parts of the offshore wind value chain – this is why we take a full lifecycle approach to managing risks and reducing costs,” concluded Barnes.

Avrasya Rüzgar, offering repair and maintenance services for wind turbines, blades, towers, and tower interior equipment, provides solutions for globally leading companies. The company is a solution partner in the wind energy industry with its experienced and expert team. Avrasya Rüzgar General Manager Buğra Akbıyık shared the details of their services and goals with Rüzgar Enerjisi Magazine in the interview we conducted.

Could you please inform us about your experience in the Wind Energy market in Turkey?

Eawind (Avrasya Rüzgar) was established in 2010 as the successor of KompoTek, Composite Technologies, which had many years of experience in composite blade and mold production as well as composite boat building. With this experience, Eawind began serving international customers for their turbines in Turkey in 2010 for blade service, being one of the first in the market.

What services do you offer to your customers?

The main services we offer are “blade repair” and “blade retrofitting.” As a wind turbine gets older, like a human being, the components such as blades, which are exposed to environmental changes, age, leading to the need for repairs. We also provide tower repairs and coatings as well as tower internal works, such as servicing hoists, winches, and ladder systems.

How are your technicians trained?

We have our own training center and are licensed to conduct GWO (Global Wind Organisation) trainings. We train and license our technicians in “Blade Repair” and “Basic Safety Training.” Additionally, we provide other extra internal trainings that our technicians undergo. Depending on our customers’ requests, there are also external training opportunities for our technicians.

Are these trainings open to other companies?

Yes, we offer GWO Blade Repair and GWO BST modules to other companies as well as freelance technicians. Our Training Center is in Izmir, Turkey, which is a perfect seaside location with direct flights to many European cities. We welcome many trainees from Germany and Greece as well as countries from the Middle East and North Africa.

Who are your main customers and partners in your region and in Europe?

We are an approved ISP (International Service Provider) for Enercon, NordexAcciona, and SiemensGamesa Renewable Energy. Our technicians are trained to the highest standards by these companies. We also service Vestas, GE, Suzlon, and Sinovel turbines mostly on the customer side. Windsourcing of Hamburg is one of our partners in Europe, from whom we supply materials for servicing, and we offer our customers their product range. With our storage capabilities, we can keep composite raw materials for our customers. We also work with Mankiewicz Coatings of Hamburg, which has a location and storage capabilities in Turkey. This is extremely helpful when transporting chemical materials to Turkey is sometimes challenging.

What were the important steps your company took in the past to improve service quality?

Starting from 2014, we were the first company to use Temporary Suspended Platforms (TSPs) for working on the blades and towers of wind turbines. Understanding the importance of platforms, we joint-ventured with a German company and produced these platforms in our production line in Izmir. We are currently working on a new platform design aimed at increasing the efficiency of servicing time. Additionally, we were one of the first companies to establish our own Training Facility for our technicians, including GWO accreditation and other ISO accreditations. I believe these were the most important steps to improve service quality.

Are you planning service operations in Europe as well?

As an ISP for major turbine manufacturers like Enercon and NordexAcciona, we are eager to serve customers in Europe. Through our Germany-based company, Eawind GmbH, we provide comprehensive services to Europe.

We would like to thank Rüzgar Enerjisi Magazine for the interview.