Dominion Energy Challenges Trump-Era Offshore Wind Halt Over Grid Reliability and Cost Concerns

The Trump administration’s decision to pause Dominion Energy’s Coastal Virginia Offshore Wind project has reignited concerns over the pace of renewable energy development in the U.S. The project, which was 65% complete and expected to be operational by early 2026, has been a cornerstone of Dominion’s efforts to meet rising electricity demand in Virginia driven by new data centers and electrification trends according to reports. The 90-day suspension, ordered by the Department of the Interior, cites national security risks, but Dominion and industry experts argue that the justification is vague and undermines the clean energy transition according to industry analysis.

The halt could delay much-needed electricity supply to Virginia’s grid and increase costs for consumers, as Dominion has invested $8.9 billion in the project to date according to financial reports. The company estimates that the delay is costing over $5 million per day in construction costs alone, with potential ripple effects on job creation and energy affordability according to project analysis. Meanwhile, four Northeast governors—Massachusetts, New York, Connecticut, and Rhode Island—have joined Dominion in challenging the order, calling for a classified briefing from the Trump administration to explain the alleged risks according to government reports.

Dominion Energy is now seeking a temporary restraining order to resume construction, with a court hearing scheduled for January 16, 2026 . The outcome of this legal battle could set a significant precedent for future offshore wind development in the U.S. The industry, which has been growing rapidly in the Northeast, now faces added uncertainty as national security concerns become a central issue in project approvals .