Dominion Energy planning multibillion-dollar power plant in Cumberland

Dominion Energy Virginia announced plans Thursday to build a multibillion-dollar 3,000-megawatt combined cycle natural gas power plant in Cumberland County, part of the utility‘s broader effort to meet rapidly growing power demand across the state.

The proposed Cumberland Energy Center would be built on roughly 900 acres off Duncan Store Road in northern Cumberland County and include two combined-cycle natural gas units designed to be capable of using hydrogen in the future, according to the company.

Dominion spokesperson Jeremy Slayton said the utility has not finalized an exact cost estimate because major project contracts are still being negotiated, but described the proposal as a “multibillion-dollar project.”

If approved by state and local regulators, Dominion plans to start construction in 2029 and have the plant begin operations between 2033 and 2034. It will generate enough electricity to power about 750,000 homes.

The announcement comes as Dominion expands generation from multiple energy sources, including solar, battery storage, offshore wind and natural gas, amid rapidly growing electricity demand.

According to Slayton, customer demand is forecast to grow by about 5% annually over the next two decades and more than double by 2045. Slayton said roughly 75% of that projected growth is attributable to data centers.

“To meet this unprecedented growth, we need to generate twice as much energy to keep up with that demand and maintain a reliable grid for our customers,” he said.

Slayton said the Cumberland facility would operate as a baseload power plant providing around-the-clock electricity while “working hand in hand” with the company’s renewable energy efforts.

The utility also argued the project would reduce Virginia’s reliance on costly imported electricity. Slayton said purchased power costs increased nearly 30% over the past year and that it’s cheaper and more cost-effective for Dominion customers if the utility has its own generation.

“The investments we are making today will ensure our customers have reliable, affordable and increasingly clean energy for decades to come,” Dominion Energy Virginia President Ed Baine said in a statement. “We are generating more power from every source to serve our customers’ growing needs, make Virginia more energy independent and produce more clean energy.”

Dominion said the power station will consist of two natural gas, hydrogen-capable combined cycle units. Slayton explained the plant would initially operate on natural gas and that future hydrogen use would depend on whether the technology and fuel market became cost-effective.

The company said the Cumberland project would create about 450 construction and operations jobs and generate more than $500 million in local tax revenue.

The project still requires several approvals, including a conditional-use permit from the county, an air permit from the Virginia Department of Environmental Quality and a Certificate of Public Convenience and Necessity from the Virginia State Corporation Commission.

Dominion expects to submit local permit applications in the coming months and plans to file with the SCC next year. Slayton said the review process would include multiple opportunities for public input.

The announcement follows several recent developments in Dominion’s energy portfolio.

In April, the SCC approved five solar and battery storage projects along with 10 solar and storage power purchase agreements totaling more than 1,000 megawatts.

Meanwhile, Dominion’s Coastal Virginia Offshore Wind project began delivering electricity to the grid in March. The 2,600-megawatt offshore wind farm is under construction, with nine turbines installed to date, according to the company.