Collaborative Initiative: Duke Energy and Tech Giants Propel Carbon-Free Energy Innovations
Duke Energy, Amazon, Google, Microsoft, and Nucor have announced collaborative efforts to explore innovative strategies for promoting carbon-free energy generation and assisting utilities in meeting the future energy demands of major businesses in North Carolina and South Carolina. This announcement was made during the White House Summit on Domestic Nuclear Deployment.
In recently signed memorandums of understanding (MOUs), the companies have proposed the development of new rate structures, referred to as "tariffs" in the utility sector. These tariffs are specifically designed to reduce the long-term costs associated with investing in clean energy technologies such as new nuclear power and long-duration storage through early commitments.
The proposed Accelerating Clean Energy (ACE) tariffs aim to empower large customers like Amazon, Google, Microsoft, and Nucor to directly support investments in carbon-free energy generation through innovative financing mechanisms and contributions addressing project risks, thereby reducing costs associated with emerging technologies. ACE tariffs would facilitate advantageous on-site generation at customer facilities, participation in load flexibility programs, and investments in clean energy assets—features appealing to customers with significant energy needs.
Furthermore, the ACE framework would include a Clean Transition Tariff (CTT), a pivotal element enabling Duke Energy to offer tailored portfolios of new carbon-free energy to commercial and industrial customers. The CTT would align clean-energy generation with customer load to expedite overall grid decarbonization. This program would be voluntary for larger customers striving to advance their clean energy objectives and would include safeguards for non-participating customers.
Moving forward, Duke Energy anticipates collaborating with other new and existing customers with similar energy requirements and sustainability objectives. The ACE tariffs would introduce new, voluntary pricing structures for Duke Energy's large commercial and industrial customers. These tariffs are contingent upon regulatory approvals in North Carolina and South Carolina and will operate alongside Duke Energy's existing five-year capital plan.
In response to these developments, representatives from the involved companies have shared their perspectives:
In recently signed memorandums of understanding (MOUs), the companies have proposed the development of new rate structures, referred to as "tariffs" in the utility sector. These tariffs are specifically designed to reduce the long-term costs associated with investing in clean energy technologies such as new nuclear power and long-duration storage through early commitments.
The proposed Accelerating Clean Energy (ACE) tariffs aim to empower large customers like Amazon, Google, Microsoft, and Nucor to directly support investments in carbon-free energy generation through innovative financing mechanisms and contributions addressing project risks, thereby reducing costs associated with emerging technologies. ACE tariffs would facilitate advantageous on-site generation at customer facilities, participation in load flexibility programs, and investments in clean energy assets—features appealing to customers with significant energy needs.
Furthermore, the ACE framework would include a Clean Transition Tariff (CTT), a pivotal element enabling Duke Energy to offer tailored portfolios of new carbon-free energy to commercial and industrial customers. The CTT would align clean-energy generation with customer load to expedite overall grid decarbonization. This program would be voluntary for larger customers striving to advance their clean energy objectives and would include safeguards for non-participating customers.
Moving forward, Duke Energy anticipates collaborating with other new and existing customers with similar energy requirements and sustainability objectives. The ACE tariffs would introduce new, voluntary pricing structures for Duke Energy's large commercial and industrial customers. These tariffs are contingent upon regulatory approvals in North Carolina and South Carolina and will operate alongside Duke Energy's existing five-year capital plan.
In response to these developments, representatives from the involved companies have shared their perspectives:
- Lon Huber, Duke Energy's SVP Pricing and Customer Solutions, emphasizes the company's commitment to innovation and collaboration in meeting the increasing demand for cleaner energy.
- Kevin Miller, Vice President of Global Data Centers at Amazon Web Services, underscores Amazon's dedication to leveraging new sources of carbon-free energy to support its operations and sustainability goals.
- Briana Kobor, Head of Energy Market Innovation at Google, highlights the importance of accelerating the adoption of clean power solutions in achieving the company's renewable energy objectives.
- Jeff Riles, Director of Datacenter Energy and Sustainability at Microsoft, emphasizes Microsoft's commitment to advancing sustainable energy solutions and achieving carbon neutrality.
- Greg Murphy, Nucor's Executive Vice President of Business Services, Sustainability, and General Counsel, expresses Nucor's enthusiasm for collaborating with Duke Energy to bring clean, reliable energy to the region while supporting its net zero goals.
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