After Setbacks, Largest US Offshore Wind Project Eyes Comeback

The United States’ most ambitious offshore wind project, the 2.6 GW Coastal Virginia Offshore Wind (CVOW) project, is showing signs of revival after months of uncertainty triggered by legal challenges and policy resistance under the Trump administration. In a significant relief for the developer, a federal judge has ordered the resumption of construction work on the project.

The project, located off the coast of Virginia, is touted as the largest offshore wind development in the country. Developed by Dominion Energy, CVOW is designed to add 2.6 GW of clean electricity to the US grid. However, the project ran into multiple headwinds after President Donald Trump publicly criticised wind energy, calling it inefficient and questioning its economic viability.

National Security & Wind Projects 

The situation worsened last year when the US Department of the Interior flagged offshore wind projects as potential national security risks, citing concerns over interference with radar systems and airspace operations. These objections led to a halt in construction not only at the Virginia project but also at several other offshore wind projects under development across the country.

Dominion Energy, which has already completed a substantial portion of the work and invested around $8.9 billion in the project, challenged the Interior Department’s stop-work order by filing a federal lawsuit. The suspension created fresh bottlenecks for offshore wind developers and heightened uncertainty in the sector.

Preliminary Injunction

The recent court order, granting a preliminary injunction in favour of Dominion Energy, has restored confidence in the project’s near-term prospects. Construction is now expected to resume, with the company aiming to complete the project by the end of this year. However, the legal case remains ongoing, and the injunction does not represent a final ruling on the matter.

As per project details, CVOW is planned to comprise 176 wind turbines with a total capacity of 2.6 GW, sufficient to power approximately 660,000 homes. The project was conceived in line with the Virginia Clean Economy Act, which mandates utilities to achieve aggressive renewable energy targets. While construction began in the early 2020s, recent policy and legal hurdles significantly slowed progress.

India & US In Wind Power 

Unlike India’s competitive tariff-based renewable energy regime, wind power economics in the US are shaped largely by federal tax incentives, accelerated depreciation, and tax equity financing. Onshore wind projects benefit from a generation-linked subsidy known as the Production Tax Credit (PTC), while offshore wind projects—being capital-intensive—primarily rely on the Investment Tax Credit (ITC). These mechanisms, along with other supportive financial structures, enable developers to improve project viability beyond revenues from electricity sales alone.

With the fate of the CVOW project now tied to ongoing legal scrutiny and the broader policy stance of the federal government, the case is being closely watched. Its outcome could have significant implications for the future trajectory of offshore wind development in the US, particularly at a time when the current administration appears less inclined to support the sector’s expansion.