To accelerate clean energy options, Duke Energy, Amazon, Google, Microsoft, and Nucor have signed agreements to explore new and innovative approaches to support carbon-free energy generation and help utilities serve the future energy needs of large businesses in North Carolina and South Carolina.
Through more than one memorandum of understanding (MOU), the companies proposed creating new rate structures, referred to as “tariffs” in the utility industry, to reduce the long-term costs of investing in clean energy technologies, such as new nuclear and long-duration storage, through early commitments.
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Duke Energy added that “tariffs would facilitate beneficial on-site generation at customer facilities.” The company has about 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky and owns some 54,800 MW of energy capacity.
The proposed tariff would enable large customers, such as the agreement signatories, to support carbon-free energy generation investments directly through innovative financing.
“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.” Lon Huber, Duke Energy, SVP Pricing and Customer Solutions, said in a statement.
“With a footprint of data centres, fulfilment centres and corporate buildings across Ohio, the Carolinas and Florida, we’re excited to collaborate with Duke Energy to find new solutions that can help us achieve our Climate Pledge to be net zero carbon by 2040 and today’s agreement marks an important step in that journey.” Kevin Miller, Vice President of Global Data Centres, Amazon Web Services, commented.
Earlier in May 2024, Duke Energy told Reuters that the intention was to develop take-or-pay tariffs, which detail the cost of power and other contract terms for supplying electricity, along with up-front infrastructure build-out payments, to protect against volatility in the data centre industry.