A US district court judge has dealt a setback to Dominion Energy’s plans to swiftly resume work on its Coastal Virginia Offshore Wind (CVOW) project, denying the company’s request for an emergency injunction against the Trump Administration. The decision, made by Judge Jamar Walker, could potentially delay the progress of the 2600MW offshore wind farm, which is currently under construction.
Dominion had sought a “temporary restraining order” to immediately halt the Trump Administration’s order from December 22, which stopped work on all five under-construction offshore wind projects in the US. However, Judge Walker ruled that Dominion’s request should be treated as a preliminary injunction, a longer and more complex legal process.
The halt in construction is already taking a financial toll on Dominion. The company disclosed in a court filing that it is incurring costs of $5 million a day on vessels alone. Dominion also asserted that these costs are being passed on to ratepayers in Virginia and are expected to rise the longer the shutdown continues.
The court’s decision could have significant implications for the offshore wind sector. It may slow down the progress of other projects, as developers might now be more cautious about potential regulatory hurdles. Moreover, the financial impact on Dominion and its ratepayers could influence the economic viability of large-scale offshore wind projects in the future.
As the legal process unfolds, the industry will be watching closely to see how this case develops and what it means for the future of offshore wind energy in the United States. The outcome could shape the trajectory of the sector, influencing investment decisions and policy developments.