- Clean, efficient natural gas power plant, plus solar, to replace Asheville coal plant
- Transmission system to be upgraded to meet growing electricity demand
- Project details – duke-energy.com/western-carolina-modernization/
CHARLOTTE, N.C. – Duke Energy today
announced plans to retire its Asheville, N.C., coal-fired power plant in four to
five years and modernize its generation and transmission system in western North
Carolina and upstate South Carolina – significantly reducing environmental
impacts, improving system reliability and minimizing long-term costs to
customers.
“We’ve developed an innovative plan that’s
a ‘win-win-win’ for consumers, the environment and the economy,” said Lloyd
Yates, Duke Energy executive vice president of market solutions and president
of the Carolinas region. “With the availability and near record low cost
of natural gas, this comprehensive project will transform the energy system in
the region to meet the growing needs of our customers and significantly reduce
emissions and water use. We’re eager to
move ahead quickly on these projects and complete the key components of the
plan by the end of 2019.”
The plan’s major components include
retiring the 376-megawatt Asheville coal power plant, investing approximately $750
million to build a 650-megawatt natural gas-fired power plant, and installing
solar generation at the site – one of the first combinations of its kind.
The plan includes investing
approximately $320 million to build a transmission substation near Campobello, S.C., and connect
it to the Asheville power plant with a new approximately 40-mile, 230-kiloVolt
(kV) transmission line. It also includes upgrading and rebuilding additional
electrical infrastructure such as transmission lines and distribution substations.
Project’s need and benefits
Electricity demand in Duke Energy
Progress’ Asheville service area has doubled over the last four decades. The
region currently must import about 400 megawatts of power during peak demand
periods to ensure system reliability. The region’s power demand is also forecast
to grow by about 15 percent over the next decade.
In addition, Duke Energy’s Asheville coal
plant is one of the company’s few “must run” power plants, meaning it must
operate to maintain reliability, even when it’s not economical.
This results in higher fuel costs that
are passed on to North Carolina and South Carolina customers each month in
their electric bills.
The new gas power plant will be able to
rapidly ramp up and down to meet the region’s voltage and power demand needs as
they change throughout the day.
The gas plant’s combined-cycle
technology will capture and convert exhaust heat into additional electricity, and
is considered one of the most efficient power plant designs available.
At today’s natural gas prices, the gas
plant would be about 35 percent less expensive to operate than the existing
coal plant, saving customers money.
Even with its expected higher operating
levels, the gas plant is estimated to have significantly lower environmental impacts
than the coal plant. (Final amounts will be determined after the company
receives necessary environmental permits.)
·
Sulfur dioxide is
estimated to be reduced by approximately 90 to 95 percent.
·
Nitrogen oxide is
estimated to be reduced by approximately 35 percent.
·
Mercury is completely
eliminated.
·
Water withdrawals
are estimated to be reduced by 97 percent.
·
Water discharges are
estimated to be reduced by 50 percent.
Carbon dioxide emissions will be reduced
by about 60 percent, on a per-megawatt hour basis, due to the efficiency of the
new gas plant and the fact that natural gas burns more cleanly than coal.
The new gas plant also will help reduce
carbon dioxide emissions across Duke Energy’s Carolinas power plant fleet.
Closing the Asheville coal plant and
building a gas plant will make it unnecessary to invest in 126 megawatts of oil-fired
generation units, to meet peak demand, and other capital investments that were
planned for 2019.
Duke Energy is working with the local natural gas distribution company to
upgrade an existing natural gas pipeline to serve the gas plant with a firm
fuel supply.
Duke Energy will continue to move
forward with removal of existing coal ash at the site, and permanent closure of
the site’s ash basins.
The new transmission line and related
upgrades, required for overall system reliability, will provide a more robust
pathway to move additional electricity to the region to efficiently meet growing
customer demand.
The power plant and electric
transmission projects will create a peak construction workforce of about 800
jobs in the 2017-2019 timeframe, and generate significant local property tax
revenues when brought in-service.
Based on current Buncombe County tax
rates, property taxes from the gas power plant are estimated to increase
between 35 and 40 percent after the site is modernized.
“We look forward to working with
regulators to provide this creative solution for our customers in the region,” Yates
said. “In the coming months, we’ll provide area landowners with options for the
new transmission line so we can find the best possible route, with minimal
impact on the environment, cultural resources, homes and businesses. Community
meetings and public input will be an important part of this process.”
Duke Energy
Duke Energy is the largest electric power holding company in the United
States with approximately $121 billion in total assets. Its regulated utility
operations serve approximately 7.3 million electric customers located in six
states in the Southeast and Midwest. Its commercial power and international
energy business segments own and operate diverse power generation assets in
North America and Latin America, including a growing portfolio of renewable
energy assets in the United States.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company
traded on the New York Stock Exchange under the symbol DUK. More information
about the company is available at duke-energy.com.
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