Dominion Energy

Dominion Energy’s net-zero by 2050 target represents a significant increase in ambition relative to the company’s previous targets. However, the 1.5°C scenario requires the electric utilities sector in advanced economies to reach net-zero emissions by 2035. There is an opportunity for Dominion Energy to increase the ambition of its target by bringing the timeframe forward to 2035 and aiming for net-negative emissions beyond this. The company could also pursue verification from the Science Based Targets initiative that the target is consistent with a 1.5°C pathway.

Dominion Energy’s 60% reduction in coal electricity generation between 2015 and 2020 resulted in a significant decrease in scope 1 and 2 emissions intensity, in line with the company’s 1.5°C pathway. But the company’s projected generation emissions intensity, assuming the continuation of active power plants until anticipated decommission, is not estimated to keep pace with the rate of reduction required by its 1.5°C pathway. The company’s dependence on gas-fired electricity generation has grown by 50% since 2015 and it lacks a formal plan to phase out coal completely. If the company continues to rely on gas, permanent greenhouse gas removal technologies will be required to achieve net-zero emissions by 2035.

In 2020, Dominion Energy established a net-zero by 2050 target for absolute scope 1 emissions. By 2030, the company aims to reduce absolute scope 1 emissions by 55%. It also commits to grow the share of renewable electricity generation from 45% in 2020 to approximately 66% in 2035.

Dominion Energy plans to invest USD 17 billion in zero-carbon electricity generation and energy storage and USD 6 billion towards electric grid transformation by 2025 and significantly increase offshore wind, solar and storage capacity by 2035. The company also plans to close two coal power units in Virginia by 2024 and most of its South Carolina coal within a decade.

In 2020, Dominion Energy invested USD 1.6 billion in low-carbon electricity sources, representing 86% of electricity generation capital expenditure. The company is also investing in low-carbon transition research and development technologies, such as hydrogen, but did not disclose its total spend in 2020.

Between 2015 and 2020, Dominion Energy’s scope 1 and 2 emissions intensity decreased by approximately 30%, which is a rate faster than what is required by its 1.5°C pathway. This is mainly due to a 60% reduction in coal electricity generation.

Dominion’s improved climate ambition is undermined by a growing reliance on gas-fired electricity generation. The company plans for gas to play a critical role in the long-term until it considers net-zero generation commercially viable. Committing to gas means it will become more challenging to decarbonise at the rate required.