• A new agreement for renewable energy procurement has been signed by Dominion Energy with the state of Virginia in the US
  • Under the agreement, Virginia will procure 420 MW of wind and solar power capacity
  • All projects are awaiting local approvals post which these are designed to come online over next three years
  • Power generated by these facilities, owned by Virginia Electric and Power, will cost a base rate of $34.00 per MWh for the first three years

Dominion Energy, a Virginia, US basedelectric and natural gas power provider,  has secured a renewable energy contract from the state of Virginia for 420 MW capacity. A new agreement signed between the utility and the Commonwealth of Virginia is the ‘largest procurement of renewable energy by a state to meet its own renewable energy needs’, said Dominion Energy.

All of this capacity will come from four proposed solar power projects with 345 MW cumulative capacity and another 75 MW onshore wind power plant. If all goes well and local approvals secured, this capacity should be online over the next three years.

One of the PV projects under the clean energy package is identified as 88 MW Belcher Solar Project owned by Dominion Energy in Louisa County. It was developed by a joint venture between Virginia Solar LLC and MAP Energy LLC. The second project with 70 MW called Bedford Solar in Chesapeake is being developed by Lincoln Clean Energy. The third PV plant, Walnut Solar in King and Queen County, will have 90 MW capacity, while the fourth unnamed project will contribute the remaining capacity.

On completion and commissioning, these solar facilities will supply power for a base rate of $34.00 per MWh for the first three years, to be increased by 2% every year post that. All the facilities will be owned by Virginia Electric and Power Company as per the contract signed.

Together this 420 MW capacity will enable the state to secure 30% of electricity needed by state agencies and institutions from renewable energy by 2022. The state has set itself the target of having 30% of its electricity system powered by renewables by 2030 and 100% from carbon-free sources by 2050 under the Executive order Forty-Three approved by state Governor Ralph Northam.

Since January 2018, Virginia has approved permits for 23 solar projects that are designed to generate more than 800 MW of clean power including four projects with 192 MW approved earlier in October 2019, and another 478 MW in the form of seven projects that are expected to be approved by the state Department of Environmental Quality by the end of 2019.

In April 2019, Dominion Energy said it will acquire 350 MW solar from EDF Renewables, BayWa and Strata Solar to supply power to Facebook under its 3 GW wind and solar capacity target to be achieved by 2022 (see Dominion Energy Partners With Facebook For 350 MW PV).