RICHMOND COUNTY, N.C. — In a surprise decision, the North Carolina Utilities Commission denied Duke Energy’s request to build a $584M gas turbine at the Smith Energy Complex in Richmond County.
The turbine would have been the sixth gas-fired turbine at the site, which is across the street from the incoming Amazon data center campus.
Filings called the estimated half-billion-dollar price tag for the turbine project “staggering,” and questioned whether it would be worth the investment. The gas turbine would serve as a “peaker” resource, providing power that can easily be ramped up and down on our hottest days and coldest nights when energy demand is at its peak.
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In his concurrence, Commissioner Donald van der Vaart questioned whether this turbine project was the most cost effective project to ensure grid reliability. He wanted Duke Energy to show it’s work and prove that alternatives like battery storage couldn’t work on the same timeline for lower cost.
The Commission’s biggest concern was whether Duke Energy’s projected power demand would actually come to fruition. Much of the forecasted growth in energy demand is coming from data center projects. Fearing those projects would ultimately use less power, face delays or be canceled altogether, the Commission wanted to wait to approve this turbine project until other proceedings had gone through, such as the review of the load forecast in Duke Energy’s Carbon Plan.
A representative from Duke Energy sent a statement saying the utility is “disappointed” by the decision and is assessing its next steps. The Commission left the door open for Duke Energy to file for project approval again as long as the utility addresses more of the Commission’s cost concerns and demonstrates why this particular project is needed over alternatives.
One commissioner dissented, siding with Duke Energy in its claims that this turbine project is necessary to keep our grid reliable and that delaying the project, it will ultimately cost ratepayers more in the end.