Duke Energy to replace coal plant with 650 MW of natural gas and solar
Duke Energy has announced a $1.1 billion plan to retire its Asheville, North Carolina coal-fired plant and replace it with a new natural gas plant -- with a solar element. The utility also plans to modernize its transmission system in western North Carolina and upstate South Carolina.
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| Credit: Duke Energy |
"We've developed an innovative plan that's a 'win-win-win' for consumers, the environment and the economy," said Lloyd Yates, Duke Energy executive vice president of market solutions and president of the Carolinas region, in a statement. "With the availability and near record low cost of natural gas, this comprehensive project will transform the energy system in the region to meet the growing needs of our customers and significantly reduce emissions and water use. We're eager to move ahead quickly on these projects and complete the key components of the plan by the end of 2019."
Duke Energy hopes to retire their 376 megawatt (MW) coal power plant in the next four or five years, and spend around $750 million to build a 650 MW natural gas-fired power plant. The plant, which was originally built in 1974, will also include a solar installation.
Duke Energy also plans to spend around $320 million to build a new transmission substation nearly Campobello, South Carolina, as well as a new 40-mile, 230 kilovolt (kV) transmission line -- to connect to the new Asheville plant. They will also be upgrading their electrical infrastructure in the area.
The increased energy produced by the new plant will supply the Asheville service area, which Duke Energy Progress said has doubled over the last four decades -- and is expected to grow by another 15 percent in the next decade. To make up for the increased need, Duke Energy currently imports around 400 MW of power during peak demand.
"In addition, Duke Energy's Asheville coal plant is one of the company's few 'must run' power plants, meaning it must operate to maintain reliability, even when it's not economical," the company said in a statement, adding that it must pass those higher costs on to their customers.
To decrease these costs, Duke Energy's plan for the new natural gas plant will reduce costs by around 35 percent -- at today's natural gas prices. The plant is also expected to have lower environmental effects than the coal plant, which includes carbon dioxide emissions reduced by 60 percent; sulfur dioxide reduced by 90 to 95 percent; nitrogen oxide reduced by 35 percent; water withdrawals reduced by 97 percent; water discharges reduced by 50 percent; and mercury completely eliminated.
Duke Energy is also working to remove existing coal ash from numerous plants, including the Asheville plant -- and will continue the progress on the site.
"We look forward to working with regulators to provide this creative solution for our customers in the region," Yates added. "In the coming months, we'll provide area landowners with options for the new transmission line so we can find the best possible route, with minimal impact on the environment, cultural resources, homes and businesses. Community meetings and public input will be an important part of this process."
Duke Energy had previously planned a capital investment of 126 MW to upgrade the Asheville plant in 2019, but will no longer be making those upgrades. The utility expects to have the new plant built by 2020.
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