Dominion Commits to Build 400 MW of New Solar Generation in Virginia

Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Dominion Virginia Power (Richmond, Virginia), a unit of Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia), will invest about $700 million to build 400 megawatts (MW) of solar generation in Virginia. The commitment is contained in a recent piece of state legislation, which calls for the projects to be operating by 2020. The legislation does not specify whether the projects will use photovoltaic (PV) or concentrating solar power (CSP) technology.

"Our commitment to solar energy is an important part of the immediate future of our state," said Thomas F. Farrell II, chairman, president and chief executive officer of Dominion Resources. "We appreciate the governor's efforts to promote renewable energy in our Commonwealth. Technology has evolved in such a way that we see a long-term benefit for our customers and will work to lead the way in solar generation."

"If we are going to build a new Virginia economy, we must be leaders in the energy economy of the future," said Virginia Governor Terry McAuliffe. "Dominion has shown a strong commitment to solar energy development, and I am proud to work with them to expand renewable generation in Virginia and diversify the Commonwealth's fuel mix." State Delegate David E. Yancey added: "I believe these solar projects that Dominion is planning will offer Virginia the most cost-effective path forward, while cultivating our local solar industry."

In January, before the legislation was signed, Dominion requested authorization from Virginia's State Corporation Commission (SCC) (Richmond, Virginia) to build a 20-MW solar power plant near its Remington Power Station in Fauquier County. If approved, that $47 million project reportedly would be Virginia's first utility-scale solar project. The SCC will hold hearings this summer on Dominion's application to build that plant.

The utility said it has 744 MW of solar generation in development, under construction or in operation across seven states, which makes it one of the nation's leading producers of solar power among publicly-traded utilities. That 744-MW figure includes the 400 MW of new utility-scale solar Dominion plans to build in Virginia.

Dominion Virginia Power already is building a 2.45-MW solar project in Chester, Virginia, on property leased from Philip Morris. The utility also has installed small solar projects at the Canon Industrial Resources Technologies facility in Gloucester, Virginia, Old Dominion University in Norfolk, Virginia, and Virginia Union University and Capital One in Richmond.

To fulfill its commitment to build 400 MW of solar generation at a cost of $700 million, Dominion is scouting Virginia for suitable utility-scale solar project sites. Once those sites are selected, the utility will file applications with the SCC to construct those facilities. Dominion's plan to build a 20-MW Remington solar facility is the state's only solar project scheduled to kick off next year.

Across the nation, Industrial Info is tracking 149 utility-scale solar generation projects valued at nearly $33 billion, which are scheduled to kick off in 2015 and 2016. Most of those projects are scheduled to be built in California, Nevada and Arizona, though projects also have been planned for North Carolina, Iowa and Ohio. For more on this, see April 9, 2015, article - U.S. Solar: Record Year in 2014, Brighter Prospects in 2015 and 2016.

"Costs for solar power continue to come down, and Dominion is one of several utilities taking advantage of that trend by announcing plans to build new utility-scale solar projects," said Brock Ramey, Industrial Info's North American power specialist. "As utilities across the country work to rebalance their resource portfolio, renewables are gaining a larger slice of the pie."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.