Avangrid, a US subsidiary of the Spanish group Iberdrola, has announced the sale of its Kitty Hawk North offshore wind lease area off Virginia (United States) to Dominion Energy’s wholly-owned subsidiary Virginia Electric and Power Company. The sale agreement encompasses the Kitty Hawk North offshore wind lease area (to be renamed CVOW-South) and associated assets in a US$160m deal, including a lease acquisition payment of US$117m and associated development cost reimbursement to Avangrid. The lease area consists of 40,000 acre (almost 16,200 ha) with a potential capacity of 800 MW, enough to supply over 200,000 homes. Dominion has not released detailed cost or in-service date estimates, which would be unveiled in future development phases.
Avangrid will retain the ownership and associated rights to the adjacent Kitty Hawk South lease with a potential capacity of 2.4 GW to power North Carolina, Virginia, or other states or private companies. Meanwhile, Virginia Electric and Power Company is constructing the 2.6 GW CVOW offshore wind project, located about 40 km north of the CVOW-South lease, and expected to be commissioned by the end of 2026.
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