Duke Energy Plans to Extend Coal Unit Lifespan Amid Grid Reliability Concerns

Duke Energy announced on Wednesday its intention to keep some coal units operational to cater to rising electricity demand, especially given the looming grid reliability challenges.

The utility submitted its long-term energy strategy to state regulators, aiming to prolong the life of several coal units in North Carolina as electricity prices and demand increase. The issue of grid reliability has become a national concern, with the Department of Energy (DOE) recently warning that, without appropriate replacements, blackouts could increase one hundredfold by 2030 due to the ongoing phase-out of power plants.

“By broadening our diverse generation portfolio and maximizing our existing power plants to meet growth needs, we aim to provide reliable energy while also saving money for our customers,” said Kendal Bowman, Duke Energy’s President for North Carolina.

The rising costs of electricity are being driven by a surge in demand, particularly attributed to the growth of data centers, after years of stagnant pricing. Duke Energy has expressed worry over affordability and intends to keep certain units operational to address this escalating demand.

The utility is looking to maintain three aging coal units at plants in North Carolina, including Belews Creek, Cliffside, and Marshall, after recent federal actions relaxed some restrictions on coal generation. Although these units were slated for retirement in the next few years, Duke Energy plans to keep them functional for an additional two to four years, with hopes of eventually converting them to operate on natural gas or even nuclear power.

“To meet expected increases in load beyond what has been forecasted, continuing operation of specific coal units could offer short-term advantages by providing the necessary capacity as demand rises,” the plan mentions. “The retirement timeline for Belews Creek Units 1 and 2, extending until the end of 2039, strategically allows the company to uphold system reliability and stability while keeping options open for future nuclear generation at that site.”

While former President Biden committed to shutting down coal plants nationwide, President Trump has referred to coal as “beautiful, clean coal,” as the DOE works towards keeping an array of retiring plants operational through emergency measures.

The North Carolina Utilities Commission is expected to hold hearings regarding the resource plan in 2026, with specific dates yet to be confirmed, and plans to issue an order by December 31, 2026.