Second biggest US utility to exit coal by 2035, doubles down on renewables

American power utility Duke Energy is to slash its share of coal generation to just 5% by 2030 and make a complete coal exit by 2035, in what it is calling the “largest planned coal fleet retirement in the industry.”

Duke is the second largest US electric company by market value, behind renewable energy juggernaut NextEra Energy, and has already retired 56 coal units since 2010, representing around 7,500MW worth of coal-fired generating capacity.

The share of coal generation in its portfolio has plunged from 60% in 2005 to 22% as of the end of 2021, and is on track for a 5% share by 2030.

Steve Young, executive vice president and chief financial officer, said the company would commit $US130 billion over the next decade, including $US63 billion over the next five years, to fund a large-scale fleet transition to zero-emission generation and grid modernisation.

As part of this, $US15 billion would be invested into nuclear, renewables, storage, and hydroelectricity, along with commercial renewable investments in wind and solar.

Duke Energy services North and South Carolina, Ohio, Kentucky, Indiana, and Florida. In Indiana alone, the company is expecting to add 7GW of renewables over the next 20 years.

Currently, Duke Energy operates over 10GW of solar and wind electricity, and is expecting to increase that figure to 16GW by 2025 and to 24GW by 2030.

Duke says it has already reduced its Scope 1 carbon emissions from electricity generation by 44% based on 2005 levels and is on pace to achieve a reduction of at least 50% by 2030 and reach net zero by 2050 from electricity generation. Duke is also targeting net-zero methane emissions by 2030.

The company partnered with Accenture and Microsoft in August 2021 to develop a first-of-its-kind methane-emissions monitoring platform using satellites which will identify and track methane emissions in near-real time.

By expanding its net zero emissions goal to include its Scope 2 and certain Scope 3 emissions, Duke will also target greenhouse gas emissions from the power it purchases for resale, from the procurement of fossil fuels used for generation, and from the electricity purchased for its own use.

Similarly, for its natural gas business, a net zero by 2050 target will include its upstream methane and carbon emissions related to purchased gas, as well as downstream carbon emissions from customers’ consumption.