U.S. Department of Defense Joins Duke Energy’s Green Source Advantage Program

Rhea-AI Summary

Duke Energy's (NYSE:DUK) Green Source Advantage (GSA) program has secured a significant participant: the U.S. Department of Defense (DOD). This partnership will provide renewable energy to five major military installations across North and South Carolina. The program will deliver an estimated 135 megawatts and 4.8 million megawatt-hours of renewable energy over 15 years from two new solar facilities in South Carolina, set to be operational by Q4 2026.

This initiative aligns with Executive Order 14057, aiming for 100% carbon-free electricity for federal agencies by 2030. Duke Energy, leading the largest clean energy transformation in the U.S., currently operates over 5,100 MW of solar power in the Carolinas. The company is committed to achieving net-zero carbon emissions from electricity generation by 2050.

Positive

• Secured U.S. Department of Defense as a major participant in the Green Source Advantage program
• Will provide 135 megawatts and 4.8 million megawatt-hours of renewable energy over 15 years
• Aligns with federal sustainability goals, potentially attracting more government contracts
• Expands Duke Energy's renewable energy portfolio and supports its clean energy transition

Negative

• None.

Financial Analyst

Duke Energy's engagement with the U.S. Department of Defense (DOD) through the Green Source Advantage (GSA) program represents a significant development for investors. The long-term commitment to provide 135 megawatts of renewable energy over 15 years can be seen as a stable revenue stream. This agreement could enhance Duke Energy's financial stability and appeal to environmentally conscious investors.

However, the project's reliance on various approvals and the expected operational date in 2026 highlight delayed benefits. Investors should note the extended timeframe for tangible returns. Furthermore, the involvement of energyRe in developing, owning and operating these facilities can diffuse some financial benefits, as the profits and risks are shared.

In the short term, the announcement may boost investor confidence but caution is required due to potential regulatory hurdles and long completion times. The commitment to renewable energy aligns with global decarbonization trends, potentially positioning Duke Energy favorably in a growing market for green energy.

Energy Market Analyst

The DOD's participation in Duke Energy's GSA program underscores a growing trend among large institutions towards renewable energy. This shift is driven by policy mandates such as Executive Order 14057, which targets 100% carbon-free electricity by 2030. The decision by the DOD to engage in a long-term renewable energy contract highlights institutional trust in Duke Energy's capabilities and could pave the way for similar agreements with other large entities.

From an industry perspective, this deal strengthens Duke Energy's portfolio in renewable energy, enhancing its credibility and market position. The GSA program provides participants with Renewable Energy Certificates (RECs), which are essential for meeting sustainability goals. This not only bolsters Duke Energy’s renewable credentials but also generates additional revenue through the sale of RECs.

Nevertheless, the energy landscape is competitive and subject to rapid changes in technology and policy. Investors should be aware that while current regulations favor renewable energy, future policy changes could impact the financial viability of such long-term projects.

Green Source Advantage (GSA) enables significant progress toward the DOD's sustainability goals for military installations in the Carolinas

CHARLOTTE, NC / ACCESSWIRE / July 16, 2024 / The United States Department of Defense (DOD) has signed on to Duke Energy's (NYSE:DUK) Green Source Advantage (GSA) program to provide renewable energy on behalf of the five largest DOD major military installations across North Carolina and South Carolina, including Fort Liberty, USMC-Camp Lejeune, USMC-Cherry Point, USAF Seymour Johnson and USAF Shaw.

The DOD's participation in the GSA program will provide an estimated 135 megawatts and approximately 4.8 million megawatt-hours of renewable energy in both states over a 15-year delivery period from two newly constructed off-site solar facilities in South Carolina. The facilities will be developed, owned and operated by energyRe, subject to local and state approvals. The projects are expected to become operational in the fourth quarter of 2026.

"This project is a great opportunity to assist our military departments and our warfighters in their decarbonization goals and is paramount to reaching our initial goals of Executive Order 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability. DLA Energy is committed to supporting the administration's clean energy initiatives and helping the military services and whole-of-government partners achieve their climate change goals," said United States Air Force Col. Jennifer Neris, director of carbon pollution-free electricity for the Defense Logistics Agency.

Duke Energy's GSA program, which supports renewable energy development, provides large nonresidential customers the opportunity to offset their power purchases by securing renewable energy from projects connected to the Duke Energy grid. The customer receives the renewable energy certificates (RECs) generated by the projects to satisfy sustainability and/or renewable, carbon-free energy goals. Customers are credited for the solar power the facility generates against their energy purchased from the Duke Energy grid.

Additional participants in Duke Energy's GSA program include the City of Charlotte, the City of Durham, Bank of America, Durham County, Duke University and Durham Public Schools.

"As our large business customers plan for the future, they also have increasingly specific goals around decarbonization and require access to renewable energy sources that can support those needs," said Meghan Dewey, vice president of Products and Services for Duke Energy. "Duke Energy continues to expand its scope of customer options and programs built with critical stakeholder feedback to enable these customers and prospective customers to meet their sustainability goals."

Executive Order 14057 has established targets for federal agencies to reach 100% carbon-free electricity by 2030, with 50% matching on a 24/7 basis. Participating in the Duke Energy GSA program is one of the DOD's first major carbon-free energy initiatives and will enable them to make considerable progress toward the requirements of EO 14057.

Duke Energy is leading the largest clean energy transformation in the United States. It owns, operates and purchases more than 5,100 MW of solar power on its energy grid in the Carolinas - enough to power the annual usage of almost 1 million homes and businesses. North Carolina currently ranks No. 5 in the nation for overall solar power. With a portfolio of nuclear, hydro and renewable energy, more than half of the company's energy mix in North Carolina is carbon-free.

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 Twitter, 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
Twitter: @DE_LoganS

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SOURCE: Duke Energy

View the original press release on accesswire.com

FAQ

What is Duke Energy's (DUK) Green Source Advantage program?

Duke Energy's Green Source Advantage program allows large nonresidential customers to offset their power purchases by securing renewable energy from projects connected to Duke Energy's grid. Customers receive renewable energy certificates (RECs) to meet sustainability goals.

How much renewable energy will the DOD receive through Duke Energy's (DUK) program?

The Department of Defense will receive an estimated 135 megawatts and approximately 4.8 million megawatt-hours of renewable energy over a 15-year delivery period from two new solar facilities in South Carolina.

When will the new solar facilities for Duke Energy's (DUK) DOD project be operational?

The two new solar facilities in South Carolina are expected to become operational in the fourth quarter of 2026, subject to local and state approvals.

What are Duke Energy's (DUK) clean energy goals?

Duke Energy aims to achieve 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 grid upgrades and cleaner generation, including energy storage, renewables, natural gas, and nuclear.