2022-05-16 | NYSE: DUKE | Press release

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  • Led by significant growth in renewable energy and storage, the plan proposes a diversified energy mix to balance reliability and affordability.
  • All options in the plan meet carbon reduction targets by North Carolina Clean Energy Act, including least cost and reliability mandates.

CHARLOTTE, North Carolina, May 16, 2022 /PRNewswire/ — After months of stakeholder feedback, Duke Energy today filed its proposed Carolinas Carbon Plan with the North Carolina Utilities Commission (NCUC) – a clean energy plan that balances affordability and reliability for customers.

The proposed plan provides a pathway to achieve 70% carbon dioxide (CO2) reduced emissions by 2030 and carbon neutral by 2050, while providing regulators with multiple options that balance affordability and reliability for customers. Duke Energy has already retired two-thirds of its coal-fired power plants in North Carolina and Caroline from the south – to phase out the remainder by the end of 2035, the company described a diverse, “all of the above” mix of solar, storage, natural gas, wind, and small modular nuclear generation, as well as energy efficiency programs and other measures to help customers reduce their energy consumption.

The plan provides a basis for future state regulatory processes to consider. By 2035, the clean energy transition would include:

  • More than three times the current level of solar.
  • Diversification of renewable energies with wind resources.
  • Significant growth in energy storage – 3,700 megawatts (MW) to 5,900 MW to support renewable energy.
  • Initial steps to develop zero-emissions load-following resources (ZELFR) to enable coal retirements and eliminate natural gas usage over time.

“We are committed to providing our customers and our communities with affordable, reliable and carbon-free energy as quickly as possible,” said Stephen DeMayDuke Energy North Carolina President. “Customers of North Carolina and Caroline from the south deserve an orderly energy transition that supports communities and keeps rates affordable, while ensuring the continued reliable service and economic competitiveness that both states depend on. »

The efficiency of Duke Energy’s dual-state system improves reliability and helps keep costs as low as possible – rates in both North Carolina and Caroline from the south are well below the national average. The proposed plan will also be communicated to the Public Service Commission of Caroline from the south (PSCSC) and filed in a future resource planning file for PSCSC decision.

Customers would see minimal costs from implementing the carbon plan over the next two years. Depending on the portfolio, the average annual impact on the plan bill is expected to range from approximately 1.9% to 2.7% each year through 2035. Duke Energy will continue to work with stakeholders and regulators to verify and adjust the plan every two years, incorporating advancing technology, updated cost forecasts and potential federal funding to ensure continued affordability and reliability.

Reinforced by stakeholder feedback

More than 500 people representing more than 300 organizations from both North Carolina and Caroline from the south participated in the stakeholder engagement process between January and March.

Third-party facilitator Great Plains Institute (GPI) hosted three virtual stakeholder meetings to walk through the plan development process and gather feedback from customers, regulators, national and local authorities, industry experts, economic development partners, environmental organizations and community groups. At the request of stakeholders, GPI also hosted three additional sessions to allow for a deeper dive into the technical issues reviewed by subject matter experts.

“Our proposed plan is stronger because of this input,” De May said. “For example, based on the robust conversation, we have accelerated the timeline for offshore wind options and significantly increased projections for new solar and storage resources. We are grateful to the hundreds of stakeholders who have participated so far. present, and we look forward to working with the NCUC as it continues to gather public feedback, make adjustments, and determine its final plan by the end of 2022.”

Multiple wallets to balance reliability and affordability

The plan explores the benefits, challenges and costs of achieving the interim target of reducing carbon emissions by 70%, as outlined in North Carolina State straight. The first portfolio in the plan achieves the 70% target by 2030, while the other three portfolios achieve the 70% target by 2032 or 2034 through increased reliance on both onshore wind and offshore and/or small modular nuclear generation, taking advantage of the flexibility of the law intended to help advance carbon-free peak generation. All four portfolios achieve carbon neutrality by 2050.

In the short term, the plan focuses on aggressive energy efficiency and demand side management, as well as grid upgrades to enable significant renewable energy growth. This includes between 7,600 MW and 11,900 MW of new solar by 2035, depending on the portfolio, in addition to the 5,000 MW of solar expected to come online by the end of the year and an additional 1,900 MW of solar currently planned or under development. As the 2030s approach, wind power and small modular nuclear power come into play to diversify the carbon-free energy mix. This diversity is essential to meet the least cost and reliability mandates required by state law.

The plan also proposes prudent short-term activities that will enable tangible progress in the energy transition regardless of the chosen portfolio, while preserving an option to allow regulators and stakeholders to refine the plan over time. These include:

  • Increase energy efficiency and demand-side customer programs to reduce peak demand by more than 3,400 MW by 2030.
  • 3,100 MW of new solar, including 600 MW of coupled storage.
  • 2,000 MW of natural gas units capable of producing hydrogen to replace coal and baseload renewables.
  • 1000 MW stand-alone battery storage.
  • 600 MW in onshore wind power.
  • Early development work for offshore wind (800 MW), small modular nuclear (570 MW) and pumped storage (1,700 MW) – long-lead resources for deployment in the early 2030s.

The plan will be updated every two years. An overview, summary and the full carbon plan are available at duke-energy.com/CarolinasCarbonPlan. The plan is shared with all stakeholders who participated in the engagement process, along with modeling data for those who have signed confidentiality agreements.

duke energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, North Carolina, is one of the largest energy holding companies in the United States. Its electric utilities serve 8.2 million customers in North Carolina, Caroline from the south, Florida, Indiana, Ohio and Kentucky, and collectively possess 50,000 megawatts of power capacity. Its natural gas unit serves 1.6 million customers in North Carolina, Caroline from the south, Tennessee, Ohio and Kentucky. The company employs 28,000 people.

Duke Energy is executing an aggressive clean energy transition to meet its goals of net methane emissions from its natural gas business and at least 50% carbon reduction from power generation by 2030 and net emissions carbon emissions by 2050. Zero goals also include Scope 2 emissions and some Scope 3 emissions. zero-emission power generation such as hydrogen and advanced nuclear.

Duke Energy was named to Fortune’s 2022 “World’s Most Admired Companies” list and Forbes’ “America’s Top Employers” list. More information is available at duke-energy.com. the Duke Energy News Center contains press releases, fact sheets, photos and videos. Duke Energy lighting features stories about people, innovations, community issues and environmental issues. Follow Duke Energy on Twitter, LinkedIn, instagram and Facebook.

Media contact: Bill Norton

800.559.3853

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