Dominion (NYSE:D) announced today that its Virginia Power subsidiary is now the proud owner of 112,800 acres of prime real estate: a federal land lease 27 miles off the coast of Virginia.

The power company will use the land to build an offshore wind farm capable of generating a whopping 2,000 MW of potential electricity.

"Offshore wind has the potential to provide the largest, scalable renewable resource for Virginia if it can be achieved at reasonable cost to customers," said Dominion Senior Vice President of Alternative Energy Solutions Mary Doswell in a statement today.

Auctioned off for just $1.6 million, Dominion now has to undergo several regulatory approvals to push through with plans. With the help of a $4 million matching grant, Dominion already has the green light to develop a test facility with two 6 MW turbines. The company expects to install its first turbine in around 10 years.