Duke Energy expands North Carolina program that helps businesses become more renewable and carbon-free

Rhea-AI Summary

Duke Energy (NYSE: DUK) has received approval for Green Source Advantage Choice (GSA-C) in North Carolina, an expanded program helping large businesses access 100% renewable, carbon-free energy. Key features include:

1. Up to 5,000 megawatts (MW) of capacity, over five times the original program's capacity.
2. New bill credit option and increased capacity for customers to match 100% of their energy usage.
3. Flexibility for customers to select and negotiate with renewable suppliers.
4. Option to combine battery storage at renewable facilities.
5. Several customer options: Bring Your Own PPA, Resource Acceleration Option, and a new 'easy option' to work directly with Duke Energy.

The program is fully funded by participating businesses, with no cost to non-participants. Duke Energy plans to file a subscription-based community solar program later this year.

Positive

• Expansion of renewable energy program to 5,000 MW capacity, over five times the original
• New options for large businesses to access 100% renewable, carbon-free energy
• Increased flexibility for customers in selecting and negotiating with renewable suppliers
• Addition of battery storage option at renewable facilities
• No cost to non-participating customers

Negative

• None.

Insights

Energy Policy Analyst

Duke Energy's expansion of the Green Source Advantage Choice (GSA-C) program in North Carolina marks a significant step towards facilitating large businesses' transition to renewable energy. The program's increased capacity to 5,000 MW, more than five times the original, demonstrates a substantial commitment to clean energy infrastructure. The flexibility offered through various options, including the new "Work with Duke Energy" choice, caters to diverse customer needs. This move aligns with the growing corporate demand for sustainability solutions and could potentially accelerate renewable energy adoption in the region. The program's structure, which allows customers to negotiate directly with suppliers and includes carbon emission reduction attributes, offers a comprehensive approach to decarbonization. However, the impact on Duke Energy's financials may be as the program is funded by participating businesses, suggesting a low-risk strategy for the company to support clean energy initiatives while maintaining financial stability.

Corporate Sustainability Expert

The expanded GSA-C program represents a significant opportunity for large businesses to align their operations with sustainability goals. The program's flexibility, including options for 24/7 clean energy and the ability to match 100% of energy usage, addresses the growing corporate demand for comprehensive renewable solutions. The inclusion of battery storage options and customizable contract lengths further enhances its appeal. This program could become a competitive advantage for Duke Energy in attracting and retaining large business customers who are increasingly prioritizing environmental commitments. The sharing of clean energy benefits with all retail customers, even non-participants, through the sale of clean energy environmental attributes (CEEAs) is a noteworthy feature that could improve public perception and regulatory relationships. However, the program's success will depend on the actual uptake by businesses and the realized impact on carbon reduction, which will need to be monitored over time.

• With added options, Green Source Advantage Choice helps large businesses access renewable energy on Duke Energy's grid

CHARLOTTE, N.C., Oct. 22, 2024 /PRNewswire/ -- Duke Energy (NYSE: DUK) has received approval for Green Source Advantage Choice (GSA-C) in North Carolina, a program that provides the opportunity for large business customers to support renewable energy development by supplementing their power usage with 100% renewable, carbon-free generation.

"Green Source Advantage Choice builds upon the success with our legacy Green Source Advantage program that has allowed large business customers to make decarbonization a long-term part of business plans," said Kendal Bowman, Duke Energy North Carolina state president. "We started with stakeholder discussions in 2022, and it has been a priority to develop an offering that meets the needs of customers while working within the regulatory framework."

Duke Energy's foundational Green Source Advantage (GSA) program supports renewable energy development by providing large nonresidential customers the opportunity to offset their power purchases by securing renewable energy from new projects connected to the local Duke Energy grid. The GSA-C program builds upon that with key modifications, including up to 5,000 megawatts (MW) of capacity – more than five times the capacity that was available under the original versions of the program. GSA-C provides large business customers with a path toward having 24/7 clean energy and enables them to count the renewable energy generated to satisfy their sustainability goals.

The program incorporates key new features including an additional bill credit option and the ability for customers to increase the capacity they can apply to match 100% of their energy usage. As a voluntary program, GSA-C is fully funded by participating large business customers, with no cost to customers who choose not to participate.  

GSA-C continues to offer large business customers the flexibility of selecting and negotiating all price terms directly with a renewable supplier of their choice, including securing clean energy environmental attributes (CEEAs) generated by that renewable facility. CEEAs are comprised of both the renewable energy certificate (REC) and the carbon emission reduction attribute associated with renewable energy generation. Customers will have the option of combining battery storage at the renewable facility, and the customer and developer may choose a mutually agreeable contract length.

GSA-C offers customers several options, including:

• Bring Your Own Purchased Power Agreement (PPA) – The continuation of the traditional "Bring Your Own PPA" option is currently available and offers 250 MW of capacity annually.
• Resource Acceleration Option (RAO) – The RAO is available and modeled on the Bring Your Own PPA option but offers an additional 300 MW of capacity every two years.
• Work with Duke Energy – A new 'easy option' allows customers to collaborate directly with Duke Energy on new facilities that will be coming online and operational in the future. These facilities can be Duke Energy-generated or operated and maintained by a third party. With planning and construction of these new projects underway, additional details on this option will be available in the coming months.

"The revenue from the sale of clean energy environmental attributes (CEEAs), or carbon-free attributes, means that Green Source Advantage Choice not only provides a valuable solution to our customers but allows all of our retail customers to share in the advantages of clean energy benefits – regardless of whether they participate in the program," said Bowman.

Later this year, Duke Energy also plans to file Clean Energy Connection with the North Carolina Utilities Commission (NCUC).  The proposed is a subscription-based community solar program will allow for an additional way for customers to meet their sustainability goals.

Similar programs have also been approved and are underway in South Carolina.

More information: Green Source Advantage Program - Duke Energy (duke-energy.com)

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition. 

Contact: Logan Stewart
24-Hour: 800.559.3853 

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SOURCE Duke Energy

FAQ

What is Duke Energy's Green Source Advantage Choice (GSA-C) program?

Green Source Advantage Choice (GSA-C) is Duke Energy's expanded program in North Carolina that allows large business customers to support renewable energy development by supplementing their power usage with 100% renewable, carbon-free generation.

How much capacity does the GSA-C program offer compared to the original program?

The GSA-C program offers up to 5,000 megawatts (MW) of capacity, which is more than five times the capacity available under the original versions of the program.

What new features does the GSA-C program include for Duke Energy (DUK) customers?

The GSA-C program includes new features such as an additional bill credit option, increased capacity for customers to match 100% of their energy usage, flexibility in selecting renewable suppliers, and the option to combine battery storage at renewable facilities.

What are the different options available in Duke Energy's GSA-C program?

The GSA-C program offers several options including Bring Your Own Purchased Power Agreement (PPA), Resource Acceleration Option (RAO), and a new 'easy option' to work directly with Duke Energy on new facilities.