Dominion Energy has proposed a substantial expansion of its solar and battery storage capacity as part of its latest 20-year energy plan, aiming to address rising electricity costs and increasing demand from population growth, data centers, electric vehicles, and industrial equipment. The utility seeks a 21 percent increase in solar generation and a 76 percent increase in battery storage beyond additions outlined in its previous plan.
The company projects that these additions will boost its total generating capacity by 87 percent, increasing from the current 21,000 megawatts to accommodate anticipated demand growth averaging 2.8 percent annually, up from 2.5 percent in last year’s update. Approximately three-quarters of the planned capacity expansion will come from non-emitting sources, including 21,229 megawatts of new solar, 3,479 megawatts of new wind, and 3,525 megawatts of battery storage facilities. The plan also includes 8,965 megawatts of natural gas-fired generation and 2,046 megawatts of small modular nuclear reactors.
Despite these shifts toward cleaner energy, Dominion expects carbon dioxide emissions from its power generation to more than double by 2046 compared to last year’s projection, rising to 47 million metric tons. The company’s current generating fleet powers approximately 5.25 million homes, but this capacity falls short of meeting present customer needs and forecasted growth, prompting it to purchase electricity from other providers at increasing costs. Dominion reported a 28 percent increase in the price of imported power earlier this year, now averaging $65.06 per 1,000 kilowatt-hours.
Under the proposed plan, the company anticipates eliminating its need to buy outside power—projected at 3,200 megawatts in 2027—for a five-year period beginning in 2035. Dominion’s preferred path maintains its previous proposal for four new baseload natural gas plants and three quick-start gas facilities to meet peak demand, excluding previously announced plants in Chesterfield and Cumberland counties. The plan also holds steady at six small modular reactors, although the utility expects each to deliver greater output than originally estimated.
The proposal assumes continuing operation of current fossil fuel plants through 2045, a deadline set by the Virginia Clean Economy Act for their closure unless the State Corporation Commission designates them necessary for grid reliability. Dominion warns that retiring all fossil fuel plants by 2045 would significantly increase costs—potentially tens of billions of dollars more—by necessitating new large-scale nuclear projects comparable to its North Anna and Surry facilities, doubling the number of solar installations, quadrupling battery storage, and quintupling nuclear generation. The company estimates this more aggressive clean energy transition would cost approximately $132.5 billion, compared to $91.5 billion under its preferred plan.
These increased costs are expected to translate into higher electricity rates for customers, with Dominion forecasting an annual rate growth of 2.26 percent over the next two decades. This would raise a typical monthly bill for 1,000 kilowatt-hours from $180.31 to $283.65 by 2046.