November 21, 2024
NCUC Approves Latest Duke ‘Carbon Plan’ to Expand Renewable, Nuclear and Gas Generation
Duke Energy
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The NCUC approved Duke Energy's second Carbon Plan and Integrated Resource Plan, authorizing procurements of renewable energy, nuclear and demand response, while calling for its 8,000 MW of coal to be retired in 2036.

The North Carolina Utilities Commission issued an order Nov. 1 approving Duke Energy’s consolidated Carbon Plan and Integrated Resource Plan (CPIRP), which is meant to meet state-mandated carbon emission cuts and improve system reliability.

The plan was the first biennial CPIRP since NCUC approved the initial one at the end of 2022. Determining the least-cost path to cutting carbon emissions while maintaining system reliability is a complex and iterative process, the regulator said.

NCUC has directed Duke to pursue every opportunity, including tax incentives and federal funding, to cut costs for consumers. Duke has delivered electricity at rates below the national average for decades, and the regulator said it would work to ensure that record is maintained.

The order waived the requirement to model a 70% carbon cut by 2030, agreeing to extend that to 2032 and telling Duke to pursue 70% carbon cuts by the earliest date possible.

The order approves a settlement between Duke and the commission’s Public Staff, which is the state’s consumer advocate. The settlement also was agreed to by Walmart and the Carolinas Clean Energy Business Association.

“We believe this is a constructive outcome that allows us to deploy increasingly clean energy resources at a pace that protects affordability and reliability for our customers,” Duke said in a statement on the CPIRP. “The order confirms the importance of a diverse, ‘all of the above’ approach that is essential for long-term resource planning and helps us meet the energy needs of our region’s growing economy.”

The CPIRP requires Duke to retire its remaining coal plants, which total more than 8,000 MW, by 2036.

Duke will conduct two competitive solar procurements in the next two years, targeting 3,460 MW of new solar generation that can be placed into service by 2031. It also will procure 1,100 MW of battery storage, which includes 475 MW of standalone storage and 625 MW paired with solar, to come online by 2031.

The order calls for Duke to procure 1,200 MW of onshore wind to come online by 2033, including at least 300 MW targeted for commercial operation by 2031.

NCUC approved new natural gas capacity as well, with 900 MW of combustion turbines to be developed by 2030 and 2,720 MW of combined cycle capacity coming online by 2031.

Duke will try to build 1,834 MW of pumped storage hydropower at the Bad Creek Hydroelectric station in South Carolina, which would be placed into service by 2034.

The order authorized early development of 300 MW of advanced nuclear generation to go into service by 2034 and an additional 300 MW for the next year. Duke also was authorized to work on extending its operating licenses for its existing nuclear plants.

For offshore wind, the CPIRP authorizes Duke to start gathering information regarding the development of up to 2,400 MW off the North Carolina coast to be in commercial operation by 2035.

The order also requires Duke to continue planning for a 1% load reduction through demand-side management and energy efficiency. It calls on Duke to work with large customers to manage load for the benefit of all customers.

Commissioner Jeffrey Hughes filed a concurrence saying that while the order will lead to benefits, the NCUC could have spent more time analyzing the potential costs associated with climate change.

“I would have liked to see more acknowledgement that producing carbon emissions, whether directly through the combustion of gas or coal or indirectly through the production and delivery of those fuels, carries a significant economic cost in terms of climate change,” Hughes said.

The order was criticized by those who want the state and Duke to move faster to cut emissions. The nonprofit Ceres, which encourages investors to address climate change, welcomed the required clean energy procurements but objected to the timeframe.

“Leading businesses across North Carolina have supported the state’s plan to reduce power sector emissions by 70% by 2030, both to reduce their own exposure to climate risk and to experience the economic benefits of clean energy investment,” said Ceres Director of State Policy Mel Mackin. “This decision not only delays that goal, but it also sets a worrying precedent.”

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