Dominion Doubles Down: Why More Utilities Are Sticking With Wind Despite Policy Pushback

The Trump administration has moved to scale back federal support for renewable energy — pausing offshore wind leases, tightening subsidy rules, and reinstating incentives for coal and natural gas. Yet across the power sector, investment plans have proved more durable than political headwinds, as utilities continue to advance projects backed by firm demand and long-term financing.

Among them is Dominion Energy, the Virginia-based utility behind the 2.6-gigawatt Coastal Virginia Offshore Wind project — one of the nation’s largest. Despite shifting federal priorities, Dominion is moving ahead to meet rising regional power demand with a mix that still leans heavily on renewables.

Across the map, utilities like Duke Energy and NextEra Energy are doing the same — expanding wind and solar portfolios to serve industrial clients, data centers, and corporate buyers. Grid operators in the Midwest are approving record renewable interconnection requests, while tech giants such as Microsoft, Meta, and Amazon lock in long-term clean power contracts.

Together, these moves underscore a widening gap between Washington’s political tone and the market realities shaping America’s next phase of power generation.

Policy Headwinds, Market Tailwinds

In January, the U.S. House Energy and Commerce Subcommittee on Energy announced a pause on new offshore wind leases, citing “energy reliability concerns,” along with a review of tax credits and environmental approvals.

For utilities, those reversals add uncertainty to an already complex buildout. Still, Dominion’s executives say their “all-of-the-above” strategy — balancing renewables, nuclear, and natural gas — is designed to ensure reliability and affordability long term.

It’s a pragmatic stance echoed across the industry. Renewables are now the cheapest source of new power generation in much of the country, with costs for onshore wind and utility-scale solar down more than 70% over the past decade. In several regions, new renewables now undercut existing fossil fuel plants on price.

Dominion’s wind investment reflects how utilities are staying the course on renewables, guided by market fundamentals rather than shifting policy signals.

Momentum From Demand

U.S. utilities are entering a period of record renewable deployment. Many are proceeding with projects financed under prior policy frameworks — a sign that the clean-energy economy’s near-term momentum remains intact.

A major driver is corporate demand. U.S. companies signed over 18 gigawatts of clean-energy contracts in 2024 alone, led by data-center operators expanding across the Mid-Atlantic and Southeast. Dominion’s service territory, home to one of the country’s largest concentrations of data centers, is feeling that surge firsthand.

“Our customers are using about five percent more power each year,” said Aaron Ruby, Dominion’s senior communications manager, in a recent statement. “We’re serving that growth with a balanced mix of renewables, nuclear, and natural gas.”

With construction pipelines approved and supply contracts locked in, utilities are choosing to stay the course rather than risk costly delays. In regions like Virginia, North Carolina, and Georgia, energy economics — not federal policy — are setting the pace.

Cautious Optimism Ahead

Analysts warn that while short-term growth is strong, the next decade could bring a more uneven trajectory. Deloitte projects that data-center electricity use could triple by 2030, while renewable capacity growth may slow if federal permitting bottlenecks persist or financing tightens.

Some developers are already tempering expectations. The U.S. Energy Information Administration forecasts renewable expansion plateauing around 2032 unless transmission upgrades accelerate. Rising materials costs and long lead times for turbines, transformers, and other components add more pressure.

For Dominion and its peers, the case for renewables is less about politics and more about planning. Stable long-term costs, reduced fuel risk, and steady industrial demand make clean energy a sound bet — even in an uncertain policy climate.

Utilities are adapting to a paradoxical moment: political retreat but market advance. Federal support may fluctuate, but the economics of clean power — bolstered by corporate demand and grid needs — are hard to ignore.

For now, America’s energy future still tilts toward renewables, even if the political winds shift in another direction.