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Released May 31, 2017 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) plans to invest $36 billion over the next 10 years to create a "smarter, more modern" electric grid and construct new gas-fired and renewable generation, the utility said in 11th annual sustainability report, titled, "Bringing the Future to Light."
Industrial Info is tracking 51 active Duke Energy projects valued at about $6.36 billion. North Carolina and Florida are drawing the largest amount of spending.
In its report, Duke pledged to invest $25 billion over the next decade in its transmission & distribution (T&D) network and an additional $11 billion in gas-fired and renewable generation. The T&D spending plan includes initiatives to "harden" the grid against extreme weather, such as hurricanes, by elevating substations in flood-prone areas, replacing and strengthening utility poles, and relocating vulnerable overhead power lines underground, Duke said.
Click on the image at right to see the states where Duke has active capital projects.
Measured by total investment value (TIV), Duke's largest active capital projects include:
As part of its growth strategy, the utility's renewable energy division has "expanded its investment portfolio through the addition of distributed solar companies and projects, energy storage systems and energy-management solutions specifically tailored to commercial businesses and other institutions." Thus, Duke intends to capitalize on the appetite for non-utility-scale distributed energy resources, focusing on the commercial and institutional sectors.
Wind power accounts for about 79% of Duke's owned renewable generation capacity, while solar accounts for the remaining 21%. These assets, which help a division of the utility's competitive commercial unit, include utility-scale wind and solar generation totaling 2,900 MW across 14 states. The assets consist of 21 wind and 63 solar projects. The power produced from these facilities is sold through long-term contracts to utilities, electric cooperatives, municipalities, and commercial and industrial customers.
On a multi-year cumulative basis, Duke aims to reduce electric consumption by its regulated retail customers by 15,000 gigawatt-hours (GWh), equal to the annual usage of 1.25 million homes, by 2020. As of yearend 2016, it has lowered customer consumption by more than 12,000 GWh, indicating the company is well on its way to achieving its goals. Like many utilities, Duke is investing in customer programs to reduce consumption and peak electric demand, lessening the need to build additional power plants.
Duke also has made enough progress reducing peak customer demand that that it set a new, tougher goal for itself. The utility had a cumulative, multi-year goal of reducing peak electric demand by 4,800 MW (about eight 600-MW plants). But peak demand reduction already exceeded that goal by yearend 2016, so Duke set a new goal of reducing peak electric demand by 5,250 MW on a cumulative basis through 2020.
The sustainability report also showed how Duke has been moving to a cleaner, greener generating portfolio is recent years, and where it intends to go. In 2005, about 61% of the utility generating capacity was fueled by coal. Nearly one-third came from nuclear, while gas accounted for 5% and renewables just 2%. At yearend 2016, coal's share of the generation capacity shrunk to 34%, while gas soared to 28%. Looking forward, in 2030, Duke sees natural gas accounting for about 36% of its generating capacity, followed by nuclear (28%), coal (27%) and renewables (9%).
Click on the image at right to see pie charts summarizing Duke's generating capacity by fuel.
Since 2011, Duke has retired 46 coal-fired units at 18 power plants, while converting oen unit to burn natural gas. The retired units have total generating capacity of 5,254 MW. Looking forward, Duke plans to retire an additional 2,006 MW of coal-fired generation at four stations between 2018 and 2024.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Industrial Info is tracking 51 active Duke Energy projects valued at about $6.36 billion. North Carolina and Florida are drawing the largest amount of spending.
In its report, Duke pledged to invest $25 billion over the next decade in its transmission & distribution (T&D) network and an additional $11 billion in gas-fired and renewable generation. The T&D spending plan includes initiatives to "harden" the grid against extreme weather, such as hurricanes, by elevating substations in flood-prone areas, replacing and strengthening utility poles, and relocating vulnerable overhead power lines underground, Duke said.
Measured by total investment value (TIV), Duke's largest active capital projects include:
- Citrus County Power Station, a 1,640-megawatt (MW), natural gas-fired, combined-cycle (NGCC) power plant valued at about $1.5 billion. That project is being built in Citrus County, Florida, and construction is expected to finish in May 2018. A unit of Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing turnkey services. For more information, see Industrial Info's project report.
- A 750-MW NGCC unit addition to the W.S. Lee Power Station, also under construction, has a TIV of about $750 million. That unit addition is expected to be operating in mid-2018. A unit of Fluor is providing engineering, procurement and construction (EPC) services. For more information, see Industrial Info's project report.
- Another unit addition, this one at the Asheville Power Station in North Carolina, will add about 560 MW of new generating capacity, at a cost of about $600 million. Construction is expected to begin later this year, and the new unit is scheduled to begin producing electricity by mid-2020. Chicago Bridge & Iron Company N.V. (NYSE:CBI) (The Hague, Netherlands) is providing EPC services. For more information, see Industrial Info's project report.
- The closure of a coal ash pond at the 3,340-MW Gibson Generating Station in Owensville, Indiana, is expected to have a TIV of about $350 million. Construction is scheduled to begin in early 2019. For more information, see Industrial Info's project report.
- The 765-MW Pioneer Transmission Line, a joint venture with American Electric Power (NYSE:AEP) (Columbus, Ohio), began turning dirt last year. The 64-mile segment of a 240-mile project is valued at about $328 million. It is expected to be in service by June 2018. For more information, see Industrial Info's project report.
As part of its growth strategy, the utility's renewable energy division has "expanded its investment portfolio through the addition of distributed solar companies and projects, energy storage systems and energy-management solutions specifically tailored to commercial businesses and other institutions." Thus, Duke intends to capitalize on the appetite for non-utility-scale distributed energy resources, focusing on the commercial and institutional sectors.
Wind power accounts for about 79% of Duke's owned renewable generation capacity, while solar accounts for the remaining 21%. These assets, which help a division of the utility's competitive commercial unit, include utility-scale wind and solar generation totaling 2,900 MW across 14 states. The assets consist of 21 wind and 63 solar projects. The power produced from these facilities is sold through long-term contracts to utilities, electric cooperatives, municipalities, and commercial and industrial customers.
On a multi-year cumulative basis, Duke aims to reduce electric consumption by its regulated retail customers by 15,000 gigawatt-hours (GWh), equal to the annual usage of 1.25 million homes, by 2020. As of yearend 2016, it has lowered customer consumption by more than 12,000 GWh, indicating the company is well on its way to achieving its goals. Like many utilities, Duke is investing in customer programs to reduce consumption and peak electric demand, lessening the need to build additional power plants.
Duke also has made enough progress reducing peak customer demand that that it set a new, tougher goal for itself. The utility had a cumulative, multi-year goal of reducing peak electric demand by 4,800 MW (about eight 600-MW plants). But peak demand reduction already exceeded that goal by yearend 2016, so Duke set a new goal of reducing peak electric demand by 5,250 MW on a cumulative basis through 2020.
The sustainability report also showed how Duke has been moving to a cleaner, greener generating portfolio is recent years, and where it intends to go. In 2005, about 61% of the utility generating capacity was fueled by coal. Nearly one-third came from nuclear, while gas accounted for 5% and renewables just 2%. At yearend 2016, coal's share of the generation capacity shrunk to 34%, while gas soared to 28%. Looking forward, in 2030, Duke sees natural gas accounting for about 36% of its generating capacity, followed by nuclear (28%), coal (27%) and renewables (9%).
Since 2011, Duke has retired 46 coal-fired units at 18 power plants, while converting oen unit to burn natural gas. The retired units have total generating capacity of 5,254 MW. Looking forward, Duke plans to retire an additional 2,006 MW of coal-fired generation at four stations between 2018 and 2024.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
