Dominion Joins DONG Energy For 12 MW Offshore Wind Projects

Dominion Energy (NYSE:D) announced that it has entered into a strategic partnership with DONG Energy of Denmark to develop 12 megawatts (MW) offshore wind projects in Virginia. DONG Energy has expertise in this area and will be entrusted with developing two 6 MW wind turbines offshore Virginia.

Dominion Energy will be the sole owner of Coastal Virginia Offshore Wind project, which is expected to begin operation by 2020 end, subject to weather patterns and protected species migration patterns.

Options for More Renewables

The two wind turbines will be built nearly 27 miles off the coast of Virginia Beach on a 2,135-acre site leased by the Virginia Department of Mines, Minerals and Energy. This project will be the second of its kind in the U.S.

If successful, the new venture will open up options for more wind projects across offshore Virginia. Also, Dominion might use its 112,800-acre site leased from the Bureau of Ocean Energy Management (BOEM) for further development of wind energy. The full development of this region could result in generation of 2,000 MW of renewable power.

Renewable Goals of Dominion

Dominion Energy is committed to developing renewable energy. At present, the company has 1,900 MW of clean energy in nine states throughout the U.S., which is either under development or in operation.

Apart from adding wind projects, the company is also adding solar projects in its generation portfolio. Since 2013, Dominion Energy has added more than 1,300 MW of solar energy in the nine states it operates in.

Price Movement

Shares of Dominion Energy has returned 0.4% in the last six months compared with the Utility –Electric Power industry’s gain of 3.4%.

Even though the company’s return is lower than the industry, the expansion of its electric transmission, natural gas facilities and midstream assets are strong positives.

Zacks Rank & Other Stocks to Consider

Dominion Energy currently holds a Zacks Rank #2 (Buy). Other top-ranked stocks in the same space are NextEra Energy (NYSE:NEE) , NRG Energy (NYSE:NRG) and NorthWestern Corporation (NYSE:NWE) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NextEra Energy delivered an average positive earnings surprise of 4.28% in the last four quarters. Its 2017 earnings estimates moved up by 4 cents to $6.67 over the last 60 days.

NRG Energy delivered an average positive earnings surprise of 193.74% in the last four quarters. Its 2017 earnings estimates moved up by 5 cents to 67 cents over the last 60 days.

NorthWestern Corporation's average positive earnings surprise for the last four quarters is 9.98%. Its 2017 earnings estimates moved up by a penny to $3.41 over the last 60 days.

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