Feb 3 (Reuters) - U.S. utility firm Dominion Energy ( D )

said on Monday estimated project costs for its Coastal

Virginia offshore wind farm have increased about 9% to $10.7

billion due to higher network upgrade expenses.

The roughly 2,600-megawatt (MW) project consists of 176

turbines, each designed to generate 14.7 MW. Located about 27

miles (43.5 kilometers) off the coast of Virginia Beach, it is

expected to be the largest offshore wind farm in the United

States.

Higher network upgrade cost are estimated by PJM, the local

electric grid operator, to reflect the significant increase in

demand growth that require incremental generation and

transmission resources across the system, Dominion said.

The nascent U.S. offshore wind industry has struggled with

soaring costs, canceled projects and a high-profile construction

accident. President Donald Trump has also cast doubts on the

industry's future after he suspended new federal offshore wind

leasing pending an environmental and economic review.

Dominion said the network upgrades do not impact project

construction or timeline and the company remains on track for

on-time completion at the end of 2026.