USA, North Carolina: The Trump administration is set to pay Duke Energy $129 M after the company agreed to abandon plans for an offshore wind farm off North Carolina.
The agreement covers Duke Energy’s lease in federal waters in the Carolina Long Bay area. According to the US Department of the Interior, the project was still at a very early stage. Duke Energy had originally secured the lease in 2022 for $155 M.
Under the agreement, Duke Energy will reinvest nearly $129 M in additional generating capacity. The company said this may include nuclear and natural gas generation, as well as grid enhancements aimed at strengthening reliability, supporting growth in the Carolinas and keeping costs low.
Kodwo Ghartey-Tagoe, Executive Vice President and Chief Executive Officer of Duke Energy Carolinas, said the reinvestment would support future generation and grid reliability in the region.
US Interior Secretary Doug Burgum said the move reflects President Donald Trump’s approach to prioritising affordable and reliable American energy.
However, the decision has drawn criticism from offshore wind supporters. Karly Brownfield, Senior Programme Manager at the Southeastern Wind Coalition, told WUNC that ending the lease was a setback for offshore wind development in North Carolina.
According to data cited by WUNC, the lease area could have supported a wind farm capable of powering around 300,000 homes. The Southeastern Wind Coalition also estimated that the project could have created 37,000 jobs, generated $232 M in taxes and supported $44 B in capital investment in the state.
The decision follows other recent agreements by the administration to terminate offshore wind leases and redirect investment towards other energy sources.
Source: Yahoo News
