Duke Energy Corp. (DUK) continues to expand its renewable portfolio. The company announced that it will build a 13-megawatt (“MW”) (AC) solar facility at the Marine Corps Base Camp Lejeune in Onslow County, NC. The project will be built in partnership with the Department of the Navy and the U.S. Marine Corps.
A Duke Energy North Carolina unit – Duke Energy Progress – will operate the facility. The project is expected to be in service this year and is yet to receive approval from the North Carolina Utilities Commission (“NCUC”). The company said that the new project could provide power to about 3,000 homes when the sun is out.
This 80-acre solar project will be connected to the electric grid at a Duke Energy Progress-owned substation on military property. The power will be available to Duke Energy Progress customers while Camp Lejeune will continue to purchase power from Duke Energy Progress.
The solar facility will help Duke Energy to meet North Carolina's green-energy mandate while boosting the Navy's investments in clean energy at military bases. The Secretary of the Navy Ray Mabus has set a goal for the department to produce one gigawatt of renewable energy by the end of 2015.
In December last year, the NCUC gave the go-ahead to Duke Energy for the acquisition and construction of three solar facilities in North Carolina. The utility had earlier announced that it will invest $500 million in several solar power projects, amounting to a total capacity of 278 MW, in North Carolina. The capital outlay will be divided into two parts – investment in three solar facilities and the value of five long-term power-purchase agreements (“PPA”).
Duke Energy, like other players in the same space NRG Energy, Inc. (NRG), Exelon Corporation (EXC) and DTE Energy Co. (DTE), is making sustained efforts to expand its renewable portfolio. The company is committed to the construction and expansion of the scale of solar and wind energy generation projects across the U.S.
In Jun 2014, the U.S. Environmental Protection Agency proposed the Clean Power Plan to curb carbon emissions from the power sector by 30% by 2030 from the 2005 levels. The rule is expected to come into effect in 2015.
Thus, Duke Energy’s efforts to expand its renewable asset base and maintain a disciplined capital investment approach will not only diversify its generation mix but also meet environmental regulations.
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