The North Carolina Utilities Commission has approved the latest iteration of the Carbon Plan that outlines how Duke Energy will reduce its carbon emissions over the coming years, with the ultimate goal of being carbon neutral by 2050.
“Determining the least-cost path to achieving the carbon dioxide emissions reduction goals while maintaining system reliability continues to be a complex and iterative process,” the Utilities Commission said in a statement.
Clean energy advocates are criticizing the latest plan, saying Duke Energy is moving away from fossil fuels too slowly.
What is the Carbon Plan?
A bipartisan state law passed in 2021 requires Duke Energy to reduce its carbon emissions by 70% compared to 2005 levels by 2030, and to reach carbon neutrality by 2050.
The bill emphasizes taking a least-cost path that maintains system reliability. The law also gives the Utilities Commission discretion to push back the 2030 and 2050 goals.
“However, the Commission shall not exceed the dates specified to achieve the authorized carbon reduction goals by more than two years, except … in the event necessary to maintain the adequacy and reliability of the existing grid,” the bill reads.
Under the bill, this Carbon Plan must be revised every two years. The first Carbon Plan was released in December 2022.
What does the 2024 Carbon Plan say?
The latest Carbon Plan pushes back the 2030 goal of reducing carbon emissions by 70%.
“A delay of the Interim Target beyond 2032 is necessary to maintain the adequacy and reliability of the existing grid,” the plan reads.
The Commission does instruct Duke to continue pursuing all reasonable steps to achieve 70% reduction by the earliest possible date.
The Utilities Commission also “approved a series of actions for Duke to take in the near term.” Some of these actions include increasing solar and onshore wind production, as well as expanding battery storage. Duke plans to build new natural gas and nuclear plants. The utility company will also retire the rest of its coal plants by 2036.
Finally, Duke is committing to gathering information early next year to potentially develop offshore wind. In 2022, the company won a lease to an area off Wilmington to build an offshore wind farm. Construction and development on that farm is still several years away.
How are clean energy advocates reacting?
Advocates applaud the plans to invest more in solar, battery storage and wind. But several clean energy and environmental organizations are disappointed with pushing back the 2030 goal.
“I think what's most concerning about the plan is it’s giving up prematurely on any attempt to meet the carbon emissions reductions requirements that North Carolinians need,” said David Neal, a senior attorney at the Southern Environmental Law Center.
Internationally, the year 2030 is viewed as a significant climate milestone. According to the United Nations, “emissions must already be decreasing and need to be cut by almost half by 2030” to stop catastrophic and irreversible climate damage.
Advocates say time is of the essence, especially considering storms like Helene — which was partially fueled by warming ocean waters — could become more severe and more frequent.
To that end, groups are worried about delaying coal retirement until 2036. Advocates say not only will this allow for more carbon emissions, but the timeline could violate recent regulations adopted by the EPA.
"According to the federal rule, Duke’s Belews Creek and Roxboro coal plants would have to retire by the end of 2031 or retrofitted to co-fire with gas by the end of 2029, however the NCUC approved plan ignores this requirement," the Sierra Club said in a statement.
The North Carolina League of Conservation Voters criticized the surprise timing of the plan's approval. The Utilities Commission was widely expected to release the plan later this year.
“We believe the timing of this intentionally coincides with the 2024 election and is meant to obscure the public’s knowledge of these plans for our energy future,” said Michelle Carter, clean energy campaigns director.
Carter also voiced concern regarding the plans to build more natural gas plants. Natural gas is a controversial form of energy, with some arguing it’s “clean” and others saying it’s simply another fossil fuel.
“This commitment to fossil fuels is a major setback for North Carolina’s climate progress,” Carter said.
What is Duke Energy’s response?
In a statement, Duke Energy said it looks forward to thoroughly reviewing the plan and “incorporating it into our future resource planning."
"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,” the company said in a statement. “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.”
