UTILITY WILL SPEND $100 MIL ON SOLAR

Like so many U.S. utilities and power companies, Duke Energy is investing in New Energy. It will spend $100 million to build distributed solar generation capacity to meet peak demand stresses.

Here again a state Renewable Electricity Standard (RES) is driving the move to New Energy. North Carolina passed an RES in 2007 and Duke is responding. Think what the nation's response would be if Congress passed a national RES and the other half of the states got into the flow.

Jim Rogers, Duke’s CEO, is clear about how he wants to use New Energy: "Solar is something that has the potential for its costs to come down over time…And clearly as it does, we want to blend solar in with our low-cost nuclear and coal here."

That may seem to hardliners like a compromised remark, but it is serious recognition for solar energy from a guy who only thinks about keeping the lights on and taking care of his stockholders.

The Duke Carolinas interest in using rooftop solar is a response to limited Carolina wind resources outside environmentally protected areas. It is an example of how any and every region and state of the country has New Energy resources that can be and must be developed in the U.S. New Energy portfolio.

In the Midwest, where the wind resource is better than the solar resource, Duke Indiana is buying wind energy developed on privately owned wind farms. Last year, Duke bought the wind portion of Tierra Energy and its 1000 megawatts of wind power in development throughout the west and southwest.

The Carolinas have solar resources that can be developed. (click to enlarge)

Duke Energy plans $100M investment in solar
John Downey, May 12, 2008 (Charlotte Business Journal via MLive)

WHO
Duke Energy Carolinas (Jim Rogers, CEO)

Wherever there is a roof, solar energy can be developed. (click to enlarge)

WHAT
Duke will expand its engagement with New Energy with a $100 million investment in rooftop solar installations.

WHEN
- Duke has announced no timelines for building New Energy.
- North Carolina requires New Energy input from state utilities beginning in 2012 and requires 12.5% of power to come from New Energy sources by 2021.

click to enlarge

WHERE
Duke’s investment in solar will involve business and residential rooftop installations.

WHY
- Duke sees distributed solar generation as a power resource, especially allowing it to manage local peak demand stresses.
- Duke’s investment in rooftop solar will require the North Carolina Utilities Commission’s approval.
- Duke Energy Carolinas has come to the conclusion that the best wind energy resources in its area cannot be developed due to environmental impacts.

Rogers is right about where North Carolina's wind is. It will have to wait to be developed. (click to enlarge)

QUOTES
Jim Rogers, CEO, Duke Energy: "As a utility company, we build, operate and dispatch solar power…"