Duke Energy is required by North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard (REPS) to have 12.5% of their electricity sales in North Carolina come from renewable energy and energy efficiency by 2021. There is also a solar component to the requirement which calls for 0.2% of their total sales to come from solar technologies by 2018. The utilities can comply with the law by purchasing renewable energy certificates (RECs) where one REC represents one megawatt-hour (MWh) of electricity generated by a renewable resource. Duke Energy is taking a variety of approaches to meet their portfolio requirements, including their standard purchase offer for RECs and an unsolicited bid process for RECs.
Duke Energy launched their REC-purchasing program in 2008. They have stated REC prices through 2027. For 2012 Duke is offering $5 per REC for general renewable energy RECs. Originally scheduled to increase over time, REC prices are now scheduled to remain at the current level through 2027. These prices are not part of a tariff, however, so Duke Energy may choose to change the rates or close the program altogether at any time. REC purchase agreements are not locked in at the rate offered in the year the agreement is signed. Instead, a REC provider who signs an agreement in 2012 will get paid at the 2012 rate for RECs generated in 2012, but then receive payments at the 2013 rate for RECs generated in 2013.
Facilities must be registered with the North Carolina Utilities Commission as a new certified renewable energy facility to participate in this program. The facility must also be interconnected with Duke Energy's electricity grid in the Carolinas. Systems that meet these requirements and are located in South Carolina are also eligible for this program. REC purchase agreement must be for at least 5 years and up to 15 years.
|Incentive Type:||Performance-Based Incentive|
|Eligible Renewable/Other Technologies:||
$5.00 per MWh
Minimum term: 5 years
Maximum term: 15 years.
|Eligible System Size:||
Must provide a minimum of 35 RECs per year, and no more than 10,000 RECs per year
|Ownership of Renewable Energy Credits:||Utility|
|Organization:||Duke Energy Corporation|
Mail Code: EC12H
Charlotte NC 28201
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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