The US Department of the Interior (DOI) has finalized a settlement with Duke Energy, under which the utility will voluntarily terminate its offshore wind lease in the Carolina Long Bay area. Duke Energy will reinvest USD 129 million (around EUR 113 million) in alternative power generation and grid infrastructure projects in the Carolinas.
Duke Energy’s offshore wind lease, named OCS-A 0546, was one of two areas auctioned by the Bureau of Ocean Energy Management (BOEM) in 2022. The other lease, OCS-A 0545, was awarded to TotalEnergies, which canceled its project earlier this year under an agreement with the federal government.
These sites are located in the Wilmington East Wind Energy Area (WEA) offshore North Carolina.
The agreement with Duke Energy is the fourth offshore wind lease buyout deal by the US government, following the TotalEnergies settlement in March, which canceled its Carolina Long Bay and New York Bight projects for reimbursement of USD 928 million (around EUR 814 million).
In April, a similar deal was made with Ocean Winds-led joint ventures, Bluepoint Wind and Golden State Wind, which ended their leases in exchange for USD 885 million (around EUR 776 million).
Earlier, the DOI agreed with Invenergy to relinquish four offshore wind leases for USD 765 million (around EUR 670 million).
Reports suggest RWE is negotiating a similar deal, prompting over 50 US organizations to urge the company to withdraw from talks in May.
Under its settlement, Duke Energy will receive USD 129 million for the lease, to be reinvested “in additional generating capacity to better serve its customers in the Carolinas.”
“The agreement will see Duke Energy reinvest nearly $129 million in new nuclear, natural gas generation, and grid enhancements to boost reliability, support growth, and control costs,” said Kodwo Ghartey-Tagoe, Executive Vice President and CEO of Duke Energy Carolinas.
The Duke Energy settlement brings the total value of offshore wind lease buyout agreements by the Trump Administration to approximately USD 2.7 billion (around EUR 2.4 billion).
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Original Story at www.offshorewind.biz