Duke Energy asks for leeway on state's 2030 emissions target

Duke Energy asks for leeway on state's 2030 emissions target

Duke Energy is asking for flexibility in meeting state targets for reducing carbon-dioxide emissions at its North Carolina production facilities.

In a long-awaited filing Monday with the N.C. Utilities Commission, Charlotte-based Duke suggests that extending the deadline for reductions in greenhouse gas emissions by up to four years will give the company time to bring longer-term offshore wind, nuclear and hydro-electric projects online while staying on pace to reach carbon neutrality by the middle of the century and limiting the financial impact on customers.

Legislation passed by the N.C. General Assembly and signed by Gov. Roy Cooper in October 2021 called on the utilities commission to "take all reasonable steps" to slash carbon-dioxide emissions by 70% by 2030 and have them be carbon-neutral by 2050.

But House Bill 951 also allows the utilities commission to push back the 2030 deadline by two years, or for longer if more time is needed to bring new nuclear and wind capacity online.

In its proposal, Duke lays out four scenarios that would allow the company to cut its 2005-level emissions by 70% between 2030 and 2034 and asks the utilities commission to approve an "all-of-the-above" approach that could incorporate elements from across those options.

Allowing flexibility on the deadline to cut carbon emissions makes sense because the company will be required to come back to the utilities commission every two years with an updated plan anyway, noted Glen Snider, managing director for integrated resource planning and analytics for Duke's North Carolina and South Carolina operations.

"In 2024, when we evaluate and adjust, we're going to be that much further along for the utilities commission to decide" the next steps in Duke's process, he said.

In 2005, Duke plants emitted 76 million tons of carbon dioxide, which is the leading contributor to human-caused climate change. By last year, that total had fallen to 41 million tons, largely as a result of retiring dozens of coal-burning "units" inside power plants.

The 70% reduction would reduce Duke's North Carolina emissions to 23 million tons.

'Near-term approach'

The plan lays out initial steps Duke Energy said would be part of the company's carbon-reduction efforts regardless of what year it hits the 70% threshold, said Kendal Bowman, Duke's North Carolina vice president for regulatory affairs and policy.

"We'd like to see the commission approve our near-term approach and keep all elements on the table for the future," she said.

According to the document filed Monday, Duke's near-term steps include adding:

3,100 megawatts of new solar.

1,000 megawatts of stand-alone battery storage.

600 megawatts of onshore wind energy.

2,000 megawatts of natural gas capacity.

Duke says it also will begin early development work for 800 megawatts of offshore wind, 570 megawatts of "small modular" nuclear and 1,700 megawatts of water-generated power, as well as make grid improvements to accommodate renewable energy sources and storage.

How fast?

Even though state law would permit it, some environmental advocates insist Duke shouldn't be allowed to delay meeting the 2030 deadline while waiting for new nuclear and offshore wind projects.

"Duke Energy can achieve the carbon reduction requirements by 2030 by retiring its remaining coal fleet and rapidly deploying energy efficiency and demand response programs, wind, solar and battery storage," the Southern Environmental Law Center, Southern Alliance for Clean Energy and other groups said in a joint statement ahead of Monday's filing.

Environmental groups also have criticized the company for increasing its reliance on emissions-producing natural gas.

Duke counters that natural gas replaces the reliability it loses by eliminating coal-burning operations while emitting less than half of the carbon dioxide produced by coal.

When the sun isn't shining or the wind isn't blowing, gas-powered plants can still operate, Duke's Snider pointed out.

That makes natural gas "extremely important for reliability and affordability," he said.

The new natural gas facilities will eventually be capable of burning carbon-free hydrogen, likely by 2035, according to the company.

Duke says it has retired 34 coal-burning units in its power plants over the past 11 years, and the remaining 14 are expected to cycle out of operation by 2034.

Looking ahead

In a summary of the overall plan, Duke said the proposed mix of solar, storage, wind, nuclear and natural gas is essential for meeting "least-cost and reliability mandates."

Those cost and reliability requirements are folded into the same legislation that established the emissions guidelines.

To cover costs associated with the plan, the average Duke customer in North Carolina would pay 2% to 2.5% more per month for their electricity through 2035, according to the filing.

Under all four proposals, Duke says it would add 2,430 megawatts of natural gas, 570 megawatts of nuclear and 1,700 megawatts of water-generated production capacity by 2035.

Up to 12,000 megawatts of solar, 4,200 megawatts of battery storage and 1,200 megawatts of offshore wind capacity also would go online by 2035.

Those figures don't include 5,000 megawatts of solar expected to be in operation by the end of this year.

Duke will hold a series of public hearings on the plan this summer. The utilities commission will accept input from individuals and organizations before ruling by the end of the year.

Louis Martinez, senior attorney with the Natural Resources Defense Council, said Monday his organization and other environmental groups will propose their own versions of Duke's plan to the commission.

John Deem covers climate change and the environment in the Triad and Northwest North Carolina. His work is funded by a grant from the 1Earth Fund and the Z. Smith Reynolds Foundation.

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