North Carolina-based Duke Energy has signed agreements with tech giants Amazon, Google and Microsoft, and steel producer Nucor, to expedite clean energy initiatives in North and South Carolina.
Under memorandums of understanding, the companies proposed the development of new rate structures known as Accelerating Clean Energy (ACE) tariffs in the utility industry.
These tariffs aim to reduce the long-term costs associated with investing in clean energy technologies, such as new nuclear power and long-duration energy storage, through early commitments.
The ACE tariffs will allow large customers such as Amazon, Google, Microsoft and Nucor to directly support carbon-free energy generation investments via new financing structures and contributions to mitigate project risk and decrease the costs of emerging technologies.
The ACE tariffs facilitate onsite generation at customer facilities, encourage participation in load flexibility programmes and foster investments in clean energy assets.
The ACE framework includes a Clean Transition Tariff (CTT), enabling Duke Energy to provide tailored portfolios of new carbon-free energy to its commercial and industrial customers.
The CTT would match the production of clean energy and customer load to speed up overall grid decarbonisation.
It is a voluntary programme aimed at larger customers committed to achieving their clean energy objectives.
The programme will include safeguards for customers who choose not to participate.
The new ACE tariffs represent voluntary pricing options for Duke Energy’s large commercial and industrial customers.
The tariffs will require regulatory approval in both North and South Carolina.
Meanwhile, Duke Energy stated that its five-year capital plan will continue as planned.
Duke Energy pricing and customer solutions senior vice-president Lon Huber stated: “In this new era of large-scale energy demand, Duke Energy is committed to working with our regulators and customers to find innovative and responsible ways to satisfy the growing need for more and cleaner energy.
“With the help of companies like Amazon, Google, Microsoft and Nucor, we can accelerate our service of large customer needs and the transition to cleaner energy, while reducing financial risks and supporting economic development in our communities.”
Google energy market innovation head Briana Kobor stated: “As we continue to progress toward our goal to operate every Google campus on clean electricity every hour of every day by 2030, we are always looking for opportunities to accelerate the delivery of new clean power to the grid.
“Through collaboration with Duke Energy, the Clean Transition Tariff creates a pathway for us and our peers to bring new, innovative solutions to the forefront faster, in a region we have called home for more than 15 years.”
Technology companies are driving significant electricity demand, largely due to their extensive and growing data centre operations. These data centres consume substantial power for servers, cooling systems and other infrastructure necessary for data storage and processing.
