U.S. Department of Energy awards Duke Energy project $57 million in cost-share funding to enhance North Carolina's energy grid

Rhea-AI Summary

The U.S. Department of Energy has awarded Duke Energy (NYSE: DUK) a $57 million cost-share grant for the North Carolina Innovative Transmission Rebuild project. This initiative aims to reconstruct the 230-kV Lee-Milburnie transmission line, spanning 40 miles across Wake, Johnston, and Wayne counties. The project will enhance grid reliability for an estimated 14,000 customers and support growing electricity demand in eastern North Carolina.

Key benefits include:

• Improved resilience against extreme weather
• Enhanced clean energy integration
• Creation of approximately 550 new jobs
• Partnerships with HBCUs and community colleges for workforce development

The project is part of the Grid Resilience and Innovation Partnerships (GRIP) program, funded through the Bipartisan Infrastructure Law.

Positive

• Received $57 million in cost-share funding from the U.S. Department of Energy
• Project will improve grid reliability for an estimated 14,000 customers
• Creation of approximately 550 new jobs
• Enhanced ability to connect more clean energy sources to the grid
• Partnerships with educational institutions for workforce development

Negative

• None.

Insights

Energy Infrastructure Analyst

The $57 million DOE grant for Duke Energy's transmission line rebuild is a significant boost for grid resilience in North Carolina. This project addresses critical infrastructure needs, potentially reducing outages and improving reliability for 14,000 customers. The 40-mile, 230-kV Lee-Milburnie line upgrade will enhance capacity to meet growing demand and facilitate clean energy integration.

From an investor's perspective, this federal funding reduces Duke Energy's capital expenditure burden, potentially improving near-term cash flows. The project aligns with Duke's ambitious clean energy transition goals, which could positively impact long-term valuation. However, the true financial impact may be given Duke Energy's $54.8 billion market cap.

Investors should monitor how effectively Duke leverages this opportunity to enhance grid performance and customer satisfaction, as these factors can influence regulatory relationships and future rate cases.

Economic Development Specialist

This project presents a substantial economic opportunity for North Carolina. The creation of an estimated 550 new jobs is a significant boost to local employment, particularly given the partnerships with HBCUs and community colleges. This aligns with the trend of infrastructure projects driving workforce development in the energy sector.

The involvement of Nash Community College and North Carolina A&T State University in workforce development programs is crucial. It creates a pipeline of skilled workers, addressing potential labor shortages in the rapidly evolving energy industry. This could have a multiplier effect on the local economy, potentially stimulating growth in related sectors.

Investors should consider the long-term economic benefits beyond the immediate project scope. Enhanced grid reliability could attract businesses to the region, potentially driving further economic growth and indirectly benefiting Duke Energy's customer base and revenue streams.

Environmental Policy Analyst

This project represents a strategic alignment with federal clean energy initiatives and Duke Energy's sustainability goals. The grid enhancement facilitates the integration of more renewable energy sources, supporting Duke's target of net-zero carbon emissions from electricity generation by 2050.

The focus on grid resilience against extreme weather is timely, given the increasing frequency of climate-related disruptions. This proactive approach could mitigate future costs associated with climate change impacts, a growing concern for utility investors.

However, it's important to note that while this project supports clean energy transition, it's primarily a grid infrastructure upgrade. Investors should balance this against Duke's broader portfolio of renewable energy investments and carbon reduction strategies. The project's true environmental impact will depend on how effectively it enables the integration and distribution of clean energy sources in the long term.

• Grant will help fund 40-mile transmission line rebuild in Wake, Johnston and Wayne counties to improve reliability for an estimated 14,000 customers

RALEIGH, N.C., Aug. 6, 2024 /PRNewswire/ -- U.S. Secretary of Energy Jennifer Granholm today announced the U.S. Department of Energy (DOE)'s Grid Deployment Office has selected the North Carolina Innovative Transmission Rebuild project to receive $57 million in cost-share funding to enhance the power grid's ability to deliver affordable, resilient energy. The project – a partnership between Duke Energy, the North Carolina Department of Environmental Quality and State Energy Office – aims to reconstruct the 230-kV Lee-Milburnie transmission line to improve reliability for customers and meet growing electricity demand in eastern North Carolina.

"The grant announced today by the Department of Energy is a win for the communities Duke Energy serves, and signals North Carolina's leadership in the energy transition," said Kendal Bowman, Duke Energy North Carolina state president. "This project will help reduce outages, enhance the power system's resilience against extreme weather, enable the connection of more clean energy sources to the grid and create job opportunities and new partnerships with community organizations."

The Lee-Milburnie transmission line spans from the Greater Raleigh area to outside Goldsboro, N.C., including portions of Wake, Johnston and Wayne counties. The line rebuild will take place in the existing right of way to minimize the impact to nearby communities.

"Supporting our customers by helping ensure they have reliable service and restoring that service safely and quickly when we need to is our No. 1 job," said Scott Batson, senior vice president and chief power grid officer at Duke Energy. "The generous grant provided by the U.S. Department of Energy for this transmission line reconstruction work will improve the reliability of the grid while delivering affordable, clean energy to our customers."

The funds are part of the Grid Resilience and Innovation Partnerships (GRIP) program, the federal government's single largest direct investment into critical grid infrastructure. Funded through the Bipartisan Infrastructure Law and administered by DOE's Grid Deployment Office, the GRIP program leverages federal and private investments to support a reliable grid that is prepared for extreme weather while also delivering affordable, clean energy and creating local economic opportunities.

"This funding will help support North Carolinians' efforts to invest in grid resiliency, improve reliability, and meet electricity demand," said U.S. Secretary of Energy Jennifer M. Granholm. "The Biden-Harris Administration is investing in the most crucial component of the nation's infrastructure, expanding and hardening the grid to allow more resilient, clean power to reach more household, and support the ongoing manufacturing boom—all while creating thousands of local jobs."

This North Carolina Innovative Transmission Rebuild will create robust opportunities for local economic development, including significant investments in workforce development programs at Nash Community College and North Carolina A&T State University.

"North Carolina A&T State University and STEPs4GROWTH are proud to be partners in developing a skilled workforce in support of Duke Energy's efforts to deliver reliable, affordable energy to its customers," said Balu Gokaraju, Ph.D., principal investigator for the STEPs4GROWTH program. "This project represents a significant investment that will not only enhance the grid but also benefit the community by creating good jobs with family sustaining wages."

The joint effort will create an estimated 550 new jobs that can be filled through partnerships with historically black colleges and universities (HBCUs) and local community colleges.

"We have been a proud partner of Duke Energy for many years and are truly excited about this new initiative to enhance power grid reliability in North Carolina," said Lew K. Hunnicutt, President of Nash Community College. "We look forward to doing our part to support this important project, which will benefit our community through new job opportunities for skilled workers."

To learn more, visit the U.S. Department of Energy Grid Deployment Office's website.

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 

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SOURCE Duke Energy

FAQ

What is the value of the grant awarded to Duke Energy (DUK) by the U.S. Department of Energy?

Duke Energy (DUK) was awarded a $57 million cost-share grant by the U.S. Department of Energy for the North Carolina Innovative Transmission Rebuild project.

How many miles of transmission line will be rebuilt in Duke Energy's (DUK) North Carolina project?

Duke Energy's (DUK) project involves rebuilding 40 miles of the 230-kV Lee-Milburnie transmission line in North Carolina.

How many customers are expected to benefit from Duke Energy's (DUK) transmission line rebuild in North Carolina?

The transmission line rebuild project by Duke Energy (DUK) is expected to improve reliability for an estimated 14,000 customers in North Carolina.

Which counties in North Carolina will be affected by Duke Energy's (DUK) transmission line rebuild project?

Duke Energy's (DUK) transmission line rebuild project will span Wake, Johnston, and Wayne counties in North Carolina.

How many new jobs is Duke Energy's (DUK) North Carolina transmission project expected to create?

Duke Energy's (DUK) North Carolina transmission project is expected to create approximately 550 new jobs.