Abandonment of North Carolina's 2030 climate target: Consequences and potential alternatives.
In a significant political shift, the presidency of Democrat Joe Biden has ushered in a new era, with voters motivated by the climate crisis playing a key role. This change is particularly evident in the state of North Carolina, where energy policies are undergoing a transformation.
Four years ago, deadlines for carbon emission cuts were enshrined into state law in a bipartisan manner. However, the landscape has recently changed with the passage of Senate Bill 266, a new North Carolina law that has been passed by the Republican-led legislature, overriding the veto of Governor Josh Stein.
This bill, among other things, erases a 2030 deadline for Duke Energy to cut its carbon emissions by 70%. The Utilities Commission, after the passage of SB 266, has ordered Duke Energy to stop near-term planning for cutting its carbon emissions by 70%. The interim target for Duke Energy to cut its carbon emissions by 70% is now missed, according to predictions from Public Staff.
Duke Energy, the state's dominant utility, is facing a resurgence in cleantech manufacturing and the explosion of AI, among other factors. Renewables are still cheaper than new fossil-fueled plants, even without subsidies, and the cost of battery storage continues to decline. Onshore wind is poised to continue moving to the forefront due to its development timelines and well-established permitting process in the state, according to Karly Brownfield of Southeastern Wind Coalition.
However, the utility's plans for a greener future may face challenges. Wait times for new natural gas turbines are as long as seven years, according to S&P Global. Duke Energy does not foresee becoming the first U.S. utility to put small modular nuclear reactors into service, with a new reactor not coming online for at least 10 years, per the company.
The utility landscape is not without controversy. One member of the Utilities Commission appears to have an apparent axe to grind against solar. Additionally, President Donald Trump's administration has launched a full-scale assault on wind and solar power across the country. The tax and spending bill signed by Trump phases out tax incentives for wind and solar more quickly and makes them harder for developers to access.
The future of North Carolina's energy sector remains uncertain, but the urgency of rising electricity demand may help prevent the predictions about Duke Energy's plans not coming true. Governor Roy Cooper, a Democrat, made promoting the clean energy economy a signature of his administration, but his party held fewer seats in both chambers after the 2024 election. The urgency of the climate crisis and the economic benefits of renewable energy may continue to drive changes in the state's energy policies in the coming years.
