The offshore wind industry offers significant economic potential for Virginia and for the entire the east coast. The federal Department of Energy estimates the industry could employ up to 40,000 people by 2030. With our low tax burden, highly skilled workforce and world class port infrastructure, Virginia is well-positioned to capture these economic benefits and become a hub for the offshore wind supply chain.
So, what appears to be a high cost for the CVOW project actually paves the way for stable, lower costs as the much larger wind farms come online over the long haul. Last, let’s not forget the important benefits of economic development and thousands of high-skilled local jobs, and the mitigation of sea level rise and coastal storm surges, a critical issue for Norfolk and other oceanfront communities.
CVOW supporters agree that investing in a pilot project with a higher per-kilowatt-hour cost but lower overall capital expenditures could lead to more rapid development of larger, less expensive offshore wind farms in the Southeast. Indeed, costs have dropped significantly over the last several years mainly due to the scaling up of the industry in Europe and better management of project development risk.
CVOW represents a unique opportunity to translate these lessons learned into cost-savings for ratepayers, potential opportunities for the Commonwealth’s universities and, ultimately, a full-scale buildout of Virginia’s offshore wind resources. Full buildout will grow the Commonwealth’s economy and diversify its portfolio of electricity generation sources.
The pressure to make the turbines happen isn't just coming from the Legislature — it's also coming from the Democratic governor, Ralph Northam. A reworked energy master plan published by his administration's energy officials this month calls for the state to install 2 GW of offshore wind over a decade.