Why Did Dominion Energy Stock Plunge Today?
The US government has paused leasing for five major offshore wind projects, including Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) development. The decision, announced in December 2025, follows concerns over national security risks linked to turbine interference with radar systems. Dominion Energy has warned that the delay could impact energy supplies for military bases and data centres in Virginia.
Interior Secretary Doug Burgum ordered the temporary halt to review potential security threats posed by wind turbines. The blades and towers, according to officials, may disrupt radar operations, creating vulnerabilities. The pause will remain in place until a full assessment of risks and possible solutions is completed.
Dominion Energy’s CVOW project, designed to produce 2,600 megawatts (MW), was among those affected. The company argued that the development is critical for meeting Virginia’s rising energy demands, particularly for military facilities and AI infrastructure. Despite these claims, the government’s decision led to an immediate financial impact—Dominion’s market value fell by over $2 billion after the announcement.
The CVOW project, once operational, was expected to power hundreds of thousands of homes. Now, its future depends on the outcome of the security review and any measures introduced to address the identified risks.
The leasing pause will continue until officials complete their evaluation of radar interference and other security concerns. If approved, the CVOW project could still play a key role in Virginia’s energy supply. For now, however, its progress—and that of four other offshore wind developments—remains on hold.
