Duke Energy postpones new Lake Julian plant until 2027
Dillon Davis
ASHEVILLE - Duke Energy plans to delay construction of a natural gas "peaker" plant near Lake Julian, a move the company attributes to the success of its local Energy Innovation Task Force.
A company filing with state regulators shows the project to build a natural gas plant has been pushed from 2023 to 2027. The proposed plant primarily would use hydraulic fracked natural gas — largely from Texas, Pennsylvania and Oklahoma — in times of high demand as part of the company's combined utilities in Western North Carolina.
Duke Energy spokesperson Randy Wheeless said the Charlotte-based company has been working to "dampen demand" for the plant to increase adoption of energy efficiency programs.
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The Energy Innovation Task Force, comprised of City of Asheville, Buncombe County and Duke Energy Progress officials, wants to transition the area to cleaner energy, which could further delay or avoid the construction of the facility, Wheeless said.
"That it’s been delayed three years speaks to the success of the task force so far but there’s some additional success coming in the future," he said.
Other than the peaker plant delay, little has changed in Duke's 2017 Integrated Resource Plan from its previous filings. It also does not change previously announced plans to demolish the 53-year-old, coal-fired plant at Lake Julian in favor of a natural gas facility that is scheduled to be on line by 2020.
That project carries a $1.1 billion cost, $750 million of which is scheduled to go toward the new plant and solar arrays.
A combined-cycle natural gas plant, expected to add 560 megawatts of energy, still is planned for the Lake Julian site for November 2019.
The company is planning for solar energy and a 5 megawatt battery storage project on the site.
The company said in its report it is assessing renewable technologies such as "battery storage and wind." Associated costs of battery storage technology are expected to decline "significantly," which Duke said makes it a viable option to support future grid services.
Duke said it has one battery constructed and two in the interconnection queue to support the Western Carolinas Modernization Project, which sets sights on retiring Asheville Plant coal units and installing a solar facility, its website shows.
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"(Duke Energy Progress) considers wind a potential energy resource in the long term to support increased renewables, portfolio diversity and long-term general compliance needs," the company said.
Duke added that investing in wind inside of the utility's footprint "may be challenging in the short-term." The company cited a lack of suitable sites, permitting challenges and "more modest capital cost declines relative to other renewable technologies" such as solar.
The delay was met with a somewhat mixed reaction from Kelly Martin, a task force member and associate director of the Sierra Club's Beyond Dirty Fuels campaign. Martin said in a news release Friday it is "great news" Duke is postponing the project, but "the better course is not to build this plant at all."
"Fracked gas has no place in a clean energy future," she said.
Martin added that North Carolina should take "full advantage" of its solar potential, and that Duke should go all-in on its energy efficiency programs.
Wheeless said Duke plans to add 3,500 megawatts of solar energy production capacity in the state over the next eight years, but that natural gas is viewed as "a great complement to solar."
"If we see greater adoption of energy efficiency and other measures in the region, there is no reason (the plant) can’t be delayed further," he said. "But I think when you look at adding 24-7 energy resources right now in the short term, natural gas is the number one choice.
"It’s fair to say people want more renewable energy as well and that’s in the plan."
A complete look at the company's energy plan is posted below.