Duke Energy is embarking on an ambitious and significant expansion of clean energy resources across the Carolinas following a comprehensive decision by the North Carolina Utilities Commission (NCUC). This detailed plan aims to balance the transition to cleaner energy with maintaining grid reliability and competitive rates for customers in both North Carolina and South Carolina. By integrating diverse energy sources such as solar, wind, and advanced nuclear, Duke Energy seeks to meet growing energy demands while reducing carbon emissions and ensuring economic stability for its consumers. This approach reflects a careful consideration of the need for sustainable energy solutions that do not compromise the affordability and availability of electricity.
Approval and Settlement
The Carolinas Resource Plan, developed by Duke Energy, was significantly shaped by extensive input from public hearings and comprehensive modeling efforts. A broad settlement was reached between Duke Energy, the NCUC Public Staff, Walmart, and the Carolinas Clean Energy Business Association. This collaborative effort underscores the importance of stakeholder engagement in shaping energy policies that benefit a wide range of interests including individual consumers, businesses, and environmental advocates. The settlement reflects a consensus that aligns the interests of various stakeholders in pursuit of a common goal: a cleaner, more reliable, and cost-effective energy future for both North Carolina and South Carolina.
The decision by the NCUC mandates a substantial increase in various energy resources, including solar, battery energy storage, onshore wind, combustion turbines, and combined cycles. This diverse approach ensures that the growing energy demands of the Carolinas are met effectively while transitioning to cleaner energy sources. By including multiple types of renewable and advanced energy sources, the plan aims to create a balanced and resilient energy grid capable of supporting the region’s long-term energy needs and economic development. The inclusion of fossil-free technologies also underscores a shift towards more sustainable energy practices, reflecting a broader trend in the energy industry.
Near-Term Resources Expansion
Duke Energy’s plan to add 3,460 MW of new solar generation, targeting a total of 6,700 MW by 2031, marks a significant increase in its solar capacity. This expansion is a critical component of the company’s strategy to reduce carbon emissions and promote renewable energy across the Carolinas. By investing heavily in solar power, Duke Energy aims to harness the abundant solar resources available in the region, contributing to its overall goal of a cleaner energy portfolio. Solar energy, being one of the most readily available and clean sources of power, plays a pivotal role in the transition away from fossil fuels.
In addition to solar, the plan outlines an increase of 1,100 MW in battery energy storage, targeting a total of 2,700 MW by 2031. Battery storage is essential for managing the intermittent nature of renewable energy sources, ensuring a stable and reliable power supply to customers. By incorporating advanced battery storage systems, Duke Energy can store excess energy produced during peak solar or wind generation periods and release it during times of high demand or low production. This capability is crucial for maintaining grid stability and reliability, particularly as the proportion of renewable energy in the grid increases.
The introduction of 1,200 MW of onshore wind energy by 2033, with at least 300 MW operational by 2031, further diversifies Duke Energy’s energy mix. This expansion of wind energy highlights Duke Energy’s commitment to harnessing various renewable resources to meet its clean energy goals. Onshore wind, being a consistent and increasingly cost-effective source of renewable energy, complements solar power by providing additional clean energy capacity. This strategic diversification of energy sources helps mitigate risks associated with reliance on a single type of renewable energy and enhances the resilience of the overall energy system.
Long-Term Resource Development
The NCUC’s decision also emphasizes the importance of long-term resource development, focusing on sustainable and reliable energy sources that will serve the Carolinas for decades to come. One key component of this strategy is the continued development of Bad Creek II, a significant hydroelectric project with $165 million allocated for early development costs. This project will enhance the region’s hydroelectric capacity, contributing to a more resilient and flexible energy grid. Hydroelectric power, with its ability to provide both base-load power and peak demand response, plays a crucial role in a balanced and sustainable energy system.
Advanced nuclear capacity is another critical element of Duke Energy’s long-term plan. The NCUC has approved the continued development of advanced nuclear projects, targeting 300 MW online by 2034 and 600 MW by 2035, with $440 million allocated for early development costs. This investment in nuclear energy underscores the need for reliable, low-carbon power sources that can provide consistent and large-scale electricity generation. Nuclear power, with its high energy density and low greenhouse gas emissions, is an essential part of Duke Energy’s strategy to meet future energy demands while minimizing environmental impact.
Offshore wind is also being evaluated as a potential long-term resource, with plans for the addition of 800-1,100 MW by 2034 and 2,200-2,400 MW by 2035. The NCUC has mandated a progress update on this initiative by July 2025, reflecting the ongoing commitment to exploring all viable clean energy options. The development of offshore wind farms capitalizes on the strong and consistent wind resources available off the coast of the Carolinas, providing a substantial and renewable energy source. This initiative is part of a broader strategy to integrate various renewable energy technologies into a cohesive and robust energy grid.
Affordability and Reliability
While the Carolinas Resource Plan aligns with the goal of transitioning to cleaner energy, it places significant emphasis on maintaining affordable rates and reliable service for customers. This balance is crucial for supporting economic growth in North Carolina and South Carolina, ensuring that the transition to clean energy does not come at the expense of consumers. By carefully planning and implementing these changes, Duke Energy aims to provide a stable and cost-effective energy supply that supports both residential and commercial needs, fostering an environment conducive to economic development and job creation.
The plan’s projected bill impact is a modest 0.9% increase by 2038, with a commitment to keeping rates below the national average. This careful consideration of cost impacts demonstrates Duke Energy’s dedication to providing value to its customers while pursuing ambitious clean energy targets. By maintaining competitive rates, Duke Energy can ensure that the transition to renewable energy is both economically viable and socially equitable, allowing all customers to benefit from cleaner energy without facing prohibitive costs. This approach reflects a broader understanding of the interconnectedness of economic, social, and environmental goals in achieving sustainable development.
Future Planning and Adjustments
The Carolinas Resource Plan includes systematic updates every two years, incorporating technology advancements, cost forecasts, and federal funding opportunities to ensure that the plan remains flexible and responsive to changing conditions. These regular updates maximize customer savings and optimize resource deployment, adapting to new developments in the energy sector. By staying current with technological innovations and market dynamics, Duke Energy can continually refine and improve its strategy, ensuring that its energy portfolio remains robust, cost-effective, and aligned with long-term sustainability goals.
The ongoing alignment with both North and South Carolina’s regulations signifies a harmonious dual-state energy strategy, essential for the successful implementation of the plan and the achievement of its long-term clean energy objectives. This regulatory synchronization facilitates coordinated efforts across state lines, enabling a more unified and efficient approach to energy planning and development. By working closely with regulatory bodies in both states, Duke Energy ensures that its initiatives comply with regional guidelines and benefit from collaborative support, enhancing the effectiveness and reach of its clean energy efforts.
Next Steps and Future Plans
The Public Service Commission of South Carolina (PSCSC) is set to deliberate on the resource plan by November 26, 2024. Following the PSCSC’s decision, Duke Energy will commence executing the plan while preparing the 2025 plan update, which is due by September 2025. These biannual adjustments, as required by North Carolina law, ensure that the plan remains current and effective, continually adapting to new technological, economic, and regulatory developments. This iterative approach allows Duke Energy to fine-tune its strategy based on real-world performance and emerging opportunities, maintaining a dynamic and forward-looking energy portfolio.
Duke Energy’s subsidiaries, Duke Energy Carolinas and Duke Energy Progress, are responsible for providing electricity to 4.6 million customers and owning 34,500 megawatts of energy capacity across 52,000 square miles in both Carolinas. This extensive service network underscores the scale and importance of the Carolinas Resource Plan in shaping the region’s energy future. By leveraging its substantial resources and expertise, Duke Energy is well-positioned to lead the transition to a cleaner, more sustainable energy system, benefiting millions of customers and contributing to regional and national climate goals.
Duke Energy Corporation, a Fortune 150 company, manages a vast electric service network serving 8.4 million customers and gas utilities for 1.7 million customers. With significant investments in clean energy transitions, Duke Energy is committed to achieving net-zero emissions targets and leading the way in sustainable energy practices. The corporation’s comprehensive and strategic approach to energy planning reflects its dedication to creating a resilient and environmentally responsible energy future, demonstrating leadership in the industry and setting a benchmark for other utilities to follow.
Conclusion
Duke Energy is set to undertake a notable and ambitious expansion of clean energy resources across the Carolinas, following a holistic decision by the North Carolina Utilities Commission (NCUC). This comprehensive plan aims to strike a balance between transitioning to cleaner energy sources and maintaining grid reliability and competitive rates for customers in North and South Carolina. By incorporating a range of energy sources such as solar, wind, and advanced nuclear power, Duke Energy aims to meet the increasing energy demands of its customers while significantly lowering carbon emissions. This strategy ensures not only environmental benefits but also economic stability for consumers by carefully considering sustainable energy solutions without compromising the affordability and availability of electricity. The initiative underscores Duke Energy’s commitment to providing reliable and eco-friendly energy, ensuring that the shift towards cleaner energy does not sacrifice the needs and expectations of their customer base.
