Tariffs Hit US Offshore Wind Project, Costs Rise by USD 443 Million Mid-Construction

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Dominion Energy said in its third-quarter 2025 results that recently imposed US tariffs have been incorporated into the updated cost estimate for the Coastal Virginia Offshore Wind (CVOW) project.

The company now places total capital costs for the 2.6 GW offshore wind farm at approximately USD 11.2 billion (approximately EUR 9.7 billion), up from about USD 10.9 billion (approx. EUR 9.5 billion) previously. The increase reflects the impact of newly imposed federal tariffs on imported materials and components used in construction.

This comes as an additional financial impact after Dominion’s announcement from earlier this year, when the developer reported the first project cost increase of around 9 per cent.

According to Dominion’s Q3 2025 results, issued on 31 October, this updated figure includes an estimated USD 443 million (approx. EUR 385 million) of actual and forecast tariff costs. The project’s developer noted that this amount reflects the impact of new federal tariffs introduced in 2025 and applies to materials and equipment sourced internationally for the project.

The impact on consumer bills is estimated to be an additional USD 0.63 (EUR 0.55).

Dominion stated that the tariff-adjusted project cost remains within its approved prudency threshold and that customer protections established under Virginia’s regulatory framework remain in place.

The tariffs in question include a 30 per cent tariff on imports from Mexico, 35 per cent on Canada, 50 per cent on steel material value, and a 15 per cent general tariff on goods imported from the European Union and other countries. Dominion clarified that no “stacking” of tariffs applies to steel-related imports. These measures, Dominion said, were incorporated into updated procurement assumptions for offshore wind components and construction materials.