Duke Energy is replacing the aging Allen Steam Station, a coal-fired power plant, with advanced battery storage technology as part of its transition to cleaner energy sources. This shift aligns with the broader trend in the utility sector of phasing out traditional energy sources in favor of more efficient and environmentally friendly alternatives.
Duke Energy plans to install a 50 megawatt/200 megawatt-hour battery system by the end of 2025, followed by a larger 167 megawatt/668 megawatt-hour system by October 2027. This move positions Duke Energy as a leader in grid-scale battery storage adoption.
The Allen Steam Station, which has been operational since 1957, has already retired four of its five generating units. The remaining unit, producing 167 megawatts, will soon be decommissioned, leaving only five coal plants in North Carolina. The transition away from coal is driven by the shale revolution, which has made natural gas a more cost-effective option for on-demand power generation.
Duke Energy's approach to battery storage has evolved over the years. While historically cautious in adopting new technologies, the company now recognizes the potential of lithium-ion batteries to provide reliable power during peak demand periods. The batteries will be charged using a mix of energy sources, including surplus solar power, but Duke Energy emphasizes that it will not rely solely on solar energy.
The utility plans to construct 2,700 megawatts of storage by 2031, repurposing the existing infrastructure at the Allen Steam Station site to streamline the transition to cleaner energy.
In addition to battery storage, Duke Energy is investing in natural gas as a complementary power source. The company plans to add a natural gas combustion turbine in Denver, North Carolina, which can quickly meet extreme demand. This 400 megawatt unit can ramp up to full capacity in less than 15 minutes, providing reliable backup during peak periods. Duke Energy is also expanding solar capacity in the region to charge the new battery systems, enhancing overall efficiency and sustainability.
Duke Energy's shift towards battery storage and away from coal is likely to influence other utilities in the industry. As one of the largest utility companies in the United States, Duke Energy's decisions carry weight. Its cautious yet deliberate approach to adopting new technologies suggests thorough research and analysis, prompting other utilities to reevaluate their own energy strategies and consider similar investments in battery storage. This transition represents a critical step towards a more sustainable future and could serve as a model for other utilities as the energy landscape continues to evolve.