Carolinas Carbon Plan

Carolinas Carbon Plan

Developing the path forward for a cleaner energy future.

Our climate strategy is our business strategy. And central to this business strategy is delivering increasingly clean energy while maintaining reliability and affordability for the communities we serve.

Our proposed Carolinas Carbon Plan is an important step toward 70% carbon dioxide (CO2) emissions reduction by 2030 and carbon neutrality by 2050, while providing multiple options that balance affordability and reliability for our customers.

The Carolinas Carbon Plan at a Glance

A stakeholder-informed proposal – with more public input to come
Two paths, four portfolios – all meet 70% carbon reduction targets and carbon neutrality by 2050
An “all-of-the-above” strategy – to maintain reliability for our customers and communities
All coal retired by 2035 – enabled by diverse mix of carbon-free and dispatchable resources
Limited-cost impacts in next two years – and about 1.9% to 2.7% annually through 2035

To learn more, read our news release, review our overview summary, or take a deeper dive into the executive summary and full carbon plan below. A list of frequently asked questions follows, along with a recap of the extensive stakeholder process that informed the plan's development.

In June 2022 Duke Energy Carolinas and Duke Energy Progress jointly issued a request for proposals seeking new solar resources. To learn more about Duke Energy’s 2022 Solar RFP, please visit the website of the RFP’s Independent Evaluator.

Plan Overview

Complete Document and Appendices

Appendix A - Carbon Baseline and Accounting

Appendix B - Stakeholder Engagement

Appendix C - System Overview

Appendix D - DEC/DEP Owned Generation

Appendix E - Quantitative Analysis

Appendix F - Electric Load Forecast

Appendix G - Grid Edge and Customer Programs

Appendix H - Screening of Generation Alternatives

Appendix I - Solar

Appendix J - Wind

Appendix K - Energy Storage

Appendix L - Nuclear

Appendix M - Natural Gas

Appendix N - Fuel Supply

Appendix O - Low-Carbon Fuels and Hydrogen

Appendix P - Transmission System Planning and Grid Transformation

Appendix Q - Reliability and Operational Resilience Considerations

Appendix R - Consolidated System Operations

Appendix S - Integrated System and Operations Planning (“ISOP”)

Appendix T - Cross-Reference

Attachment I - DEC 2020 Resource Adequacy Study

Attachment II - DEP 2020 Adequacy Resource Study

Attachment III - DEC & DEP ELCC Study

Attachment IV - Duke Energy EE & DSM Market Potential Study

Frequently asked questions

Our country is at a critical point in addressing the important issue of climate change. Like many electric utilities, Duke Energy is taking action to address this challenge while delivering affordable, reliable and increasingly clean energy. This is what our customers, communities and stakeholders expect from us and what we expect from ourselves. Reducing carbon in an orderly, sensible way mitigates risks of continued reliance on emissions-intensive resources and furthers economic growth by creating an environment that is attractive for new industry, while also supporting local economies with new investments.

This filing builds on nearly two decades of CO2 emissions reductions. We’ve made incredible progress, retiring two-thirds of our aging, inefficient coal plants in North Carolina and South Carolina and reducing emissions by more than 40% since 2005.
Depending upon the portfolio, the average estimated customer bill impact from Carbon Plan implementation across the Carolinas ranges from 1.9% annually to 2.7% annually through 2035. Continued use of coal will get more expensive and less reliable over time as regulations increase and coal supplies dwindle, so reducing reliance upon carbon-intensive coal generation is prudent and in the financial interest of our customers. We also expect the cost for renewable energy and storage to drop over time.
No – we are filing the proposed Carbon Plan initially in North Carolina, while the filing in South Carolina will occur at a later date and may reflect updates that have occurred in the interim. Duke Energy’s utilities span both Carolinas. The electricity generated by Duke Energy’s power plants doesn’t stop at the state line, and neither can planning for a zero-carbon future. For decades, customers in both states have benefited by sharing the costs of these integrated systems, providing efficient and reliable electricity while consistently maintaining rates below the national average. While the timing of the filings may be different, Duke Energy looks forward to presenting its carbon reduction proposal to regulators and customers in both states.
Duke Energy will submit a proposed plan to state regulators for their consideration – regulators have final say on the plan. In North Carolina, we filed our proposal on May 16 after holding stakeholder meetings to gather input. The North Carolina Utilities Commission will hold public hearings on that proposal, then approve a final plan by Dec. 31, 2022, as required by state law. That final plan will be foundational to the plan filed in the 2023 Integrated Resource Plan docket for independent decision by the Public Service Commission of South Carolina.
Our proposed Carbon Plan includes four portfolios for regulators to consider. All four replace coal with a diverse mix of solar, storage, wind, small modular reactor and natural gas – this diversity is key to meeting least-cost and reliability mandates.

Like the IRP, the Carbon Plan does not address siting details. After a plan is approved, Duke Energy will focus on the execution phase, identifying sites across the Carolinas that provide the most benefit to customers and mitigate impacts on communities impacted by plant retirements.
Energy diversity is what keeps the lights on when the sun is not shining and the wind is not blowing. When temperatures are extreme and energy demand is at its highest, we depend on a diverse energy mix – including natural gas – to serve customers.

Replacing coal with more efficient natural gas is the equivalent of driving a hybrid vehicle – it has some emissions, but it’s a much cleaner option than the gasoline-powered vehicle you had been driving. Modern combined-cycle natural gas plants emit 60% less carbon than our coal facilities. And any new natural gas facilities we build will be capable of burning carbon-free hydrogen in the future, allowing us to leverage existing infrastructure as we transition toward net-zero emissions by 2050.
We’ve already retired two-thirds of our Carolinas coal plants, including all our plants in South Carolina. We plan to retire most or all of our remaining subcritical North Carolina coal plants by 2030 and exit all use of coal by the end of 2035, subject to regulatory review as part of the Carbon Plan process.

We plan to prioritize existing plant sites for replacement generation to leverage the existing transmission, workforce and infrastructure, which will enable the energy transition to happen more cost-efficiently for our customers and will support the local economy of these communities. As we make investments in new technologies and build new infrastructure, we will create jobs in our communities across North Carolina and South Carolina.

Stakeholder Engagement Materials

An extensive public input process strengthened the carbon plan. We were joined by more than 500 individuals representing over 300 organizations from North Carolina and South Carolina – we are grateful for their participation, and their feedback informed the plan that we presented to regulators. The complete stakeholder recordings and reports are archived below.

Jan. 25, 2022
9 a.m. to 4 p.m.

Agenda
Meeting Materials

Meeting Videos

Part 1: Welcome and Process Overview
Part 2: Intro to Resource Planning and Decarbonization
Part 3: Road to Emissions Reductions
Part 4: Intro to Modeling
Part 5: Economic Coal Retirements Modeling
Part 6: Load Forecasts – Energy Efficiency
Part 7: Load Forecasts – Net Metered Solar Forecast and Electric Vehicles
Part 8: Solar Interconnection and Generation Technology Forecasts

Meeting Reports

Great Plains Institute Summary Report
NCUC Public Staff Summary Report
PSCSC Informational Filing (attaches to Great Plains Institute Summary Report above)
Feb. 23, 2022
9:30 a.m. to 4:30 p.m.

Agenda
Meeting Materials

Meeting Videos

Part 1: Additional Stakeholder Questions from Meeting #1
Part 2: Principles for Portfolio Development and Evaluation
Part 3: Considerations Driving Different Portfolio Options

Meeting Reports

Great Plains Institute Summary Report
NCUC Public Staff Summary Report
PSCSC Informational Filing (attaches to Great Plains Institute Summary Report above)
March 22
9:30 a.m. to 4:30 p.m.

Agenda
Meeting Materials

Meeting Videos

Part 1: Stakeholder Desired Outcomes
Part 2: Grid Edge and Customer Programs – Energy Efficiency/Demand-Side Management
Part 3: Grid Edge and Customer Programs – Integrated Volt Var Control; Distributed System Demand Response; Rate Design Opportunities & Distributed Energy Technologies
Part 4: Carbon Plan Transmission Impacts
Part 5: North Carolina Transmission Planning Collaborative Overview
Part 6: Clean Power Suppliers Association/Brattle Group Presentation on Carbon Plan Modeling
Part 7: Duke Energy Modeling Update and Preliminary Portfolio Development

Meeting Reports

Great Plains Institute Summary Report
NCUC Public Staff Summary Report
In response to stakeholder feedback, we hosted three technical subgroup meetings on Feb. 18 to discuss and receive technical feedback from stakeholders on the following topics:
- Subgroup 1: Solar Interconnection Forecast Meeting Materials
- Subgroup 2: Solar/Wind Technology Operational/Cost Assumptions Meeting Materials
- Subgroup 3: Storage Operational/Cost Assumptions and System Configurations Meeting Materials

In addition to these initial stakeholder meetings prior to the plan’s development, the North Carolina Utilities Commission is hosting public hearings to take input on the proposed carbon plan. More detail is available here, along with formal public notice here.