North Carolina’s Utilities Commission has given the green light to Duke Energy’s revised green tariff initiative, known as Green Source Advantage Choice. The program, which allows large customers to accelerate the construction of solar energy projects, faced opposition from critics who argued it wouldn’t significantly aid the company’s transition to zero-carbon electricity. Despite these concerns, the commission approved the revised tariff, highlighting its potential to add accelerated renewable energy capacity.
In earlier versions of the initiative, large customers could support renewable energy projects, but a 2021 law requiring Duke to significantly reduce its carbon emissions by 2050 complicated the accounting process. The central issue of “regulatory surplus” arose, questioning whether large customers could genuinely claim their support made a difference when Duke is already mandated to build numerous solar farms. This led to debates and amendments aimed at resolving these concerns.
Accelerated Renewable Energy Projects
The revised tariff option includes a “resource acceleration” feature, allowing large customers to advance around 150 megawatts of solar energy annually by sponsoring projects not selected in Duke’s yearly bidding process. Duke would receive retroactive credit for these additional solar projects every two years as part of its compliance with the carbon reduction law. According to Duke Energy spokesperson Logan Stewart, the company will formalize the program in the coming weeks and update its Green Source Advantage public webpage with new details.
The [commission] didn’t give us a deadline but asked that we do so when reasonably feasible.
Despite the new resource acceleration option, some clean energy advocates view it as a minor improvement, noting it accounts for just 1 gigawatt of the 5-gigawatt program over a decade. Additionally, several groups, including the Carolina Utility Customers Association, voiced skepticism about the new option, arguing it might not provide sufficient environmental benefits to meet corporate sustainability goals.
Future Prospects
While the approval of the Green Source Advantage Choice program has stirred mixed reactions, there remains cautious optimism among clean energy advocates. A memorandum of understanding between Duke Energy and major corporations suggests potential for a more impactful Clean Transition Tariff in the future. This program could support a broader range of projects, including solar-battery storage combinations and small nuclear energy initiatives, offering carbon-free electricity around the clock.
Duke Energy has emphasized the Green Source Advantage Choice program as a preliminary step, with plans to introduce additional tariffs like the Clean Transition Tariff. However, this potential program would still not cater to municipalities and other midsize customers with climate commitments, leaving them with limited options until further adjustments are made by Duke.
The approval of Duke Energy’s revised green tariff marks a significant yet contentious step in North Carolina’s transition to renewable energy. While the program offers some advancements, it underscores the ongoing challenges in balancing corporate sustainability goals with regulatory requirements. The future introduction of the Clean Transition Tariff presents an opportunity for more comprehensive solutions, though its impact remains to be seen. The broader implications for midsize customers and the actual effectiveness of these programs will depend on future developments and continued regulatory scrutiny.
