Virginia has become a pivotal hub for data centers, particularly in Loudoun County, which alone houses approximately 200 data centers and manages over 70% of global web traffic. As demand for digital services continues to swell, so does the voracious appetite for energy to power these centers. In response, Dominion Energy is seeking approval from Virginia’s State Corporation Commission to construct a new 1-GW natural gas-fired power plant, the Chesterfield Energy Reliability Center (CERC). Located near the existing Chesterfield Power Station, CERC is designed to bolster the energy grid and support the expanding data center industry. The facility is to be equipped with four 250-MW simple-cycle gas turbines, capable of burning natural gas, a blend of up to 10% hydrogen, and low-sulfur #2 distillate fuel oil. It will also include six black start generators that use ultra-low-sulfur diesel, with construction set to begin in the coming year and commercial operations expected by 2029. However, the proposal has faced substantial opposition from environmental groups, who argue that the region has already suffered from pollution due to existing fossil fuel power plants.
The Push for Energy Infrastructure
Dominion Energy’s plan to build the Chesterfield Energy Reliability Center comes amid a broader strategy to expand its power capacity catering to the burgeoning data center business. The company is actively seeking ways to meet the mounting energy demands posed by this rapid growth, which is reflective of a larger trend seen in other states like Georgia, North Carolina, and South Carolina. Utilities across these states are projected to add over 20 GW of new natural gas-fired capacity in the next 15 years, with data centers contributing to 65-85% of the anticipated load growth. Dominion’s expansion beyond CERC includes enhancing facilities like the 645-MW Possum Point Power Station in Prince William County. Dominion’s endeavors underscore the tension between advancing technological infrastructure and addressing pressing energy needs.
Considering the complex narrative of fulfilling energy needs while addressing environmental concerns, Dominion emphasizes that the new plant will utilize modern, more efficient technologies. The four 250-MW simple-cycle gas turbines designed to operate at CERC can burn a blend of up to 10% hydrogen, offering a relatively lower emission footprint compared to traditional fossil fuels. Additionally, these turbines come with capabilities to burn low-sulfur #2 distillate fuel oil, further mitigating pollution intensity. Notably, the plant’s black start generators will employ ultra-low-sulfur diesel, which also aligns with the technologically driven approach toward minimizing harmful emissions. This planned upgrade underscores a critical component of Dominion’s strategy to harmonize economic growth with environmental stewardship, despite the noted challenges ahead.
Environmental and Legal Hurdles
Despite Dominion Energy’s efforts in employing advanced technologies to reduce environmental impact, opposition from environmental advocacy groups remains strong. Critics argue that adding another fossil fuel-based power plant would only exacerbate the pollution already plaguing the region. Rachel James from the Southern Environmental Law Center emphasized the detrimental environmental and health costs that additional emissions could impose on already burdened communities, urging for a pivot towards clean energy solutions instead. The environmental arguments extend beyond air quality concerns, underscoring the broader implications of continuing reliance on fossil fuels amid global climate change initiatives.
The pushback against CERC has also manifested legally, with zoning challenges stalling progress. These legal disputes highlight the broader societal debates around balancing economic progress with sustainable practices. The environmental groups’ stance aligns with wider public sentiment increasingly leaning towards renewable energy sources. As Dominion navigates these hurdles, the tension between innovative energy solutions and existing legal frameworks adds layers of complexity to the project’s realization. Balancing state energy policies with ecological conservation efforts will require nuanced resolutions and significant stakeholder engagement, pointing towards a longer-term negotiation process to reach an agreeable path forward.
Future Considerations and Potential Solutions
Virginia, especially Loudoun County, has become a crucial hub for data centers, with about 200 centers handling over 70% of global web traffic. This surge in demand for digital services has significantly increased the need for energy to power these centers. In response, Dominion Energy is seeking approval from Virginia’s State Corporation Commission to build a new 1-GW natural gas-fired power plant, known as the Chesterfield Energy Reliability Center (CERC). Situated near the existing Chesterfield Power Station, CERC aims to strengthen the energy grid and support the growing data center industry. The facility will feature four 250-MW simple-cycle gas turbines, which can burn natural gas, a mix containing up to 10% hydrogen, and low-sulfur #2 distillate fuel oil. It will also include six black start generators using ultra-low-sulfur diesel. Construction is scheduled to start next year with commercial operations expected by 2029. Nevertheless, environmental groups strongly oppose the proposal, citing existing pollution from current fossil fuel power plants in the region.
