Duke Energy outlines $1.1 billion plan to end coal era in Asheville

Charlotte-based Duke Energy outlined plans Tuesday to “end the coal era” in Asheville, a step it says will save energy and money for its Western North Carolina and Upstate South Carolina customers.

The plan’s major projects include retiring its 376-megawatt Asheville coal power plant, spending about $750 million to build a 650-megawatt natural gas-fired power plant and installing solar generation at the site.

The plan also includes investing about $320 million to build a transmission substation near Campobello, S.C., and connecting it to the Asheville plant with a new 40-mile, 230-kiloVolt transmission line. The plan also includes rebuilding additional electrical infrastructure.

Lloyd Yates, Duke Energy executive vice president of market solutions and president of the Carolinas region, called the plan a “win-win-win” for consumers, the environment and the economy.

“With the availability and near record low cost of natural gas, this comprehensive project will transform the energy system in the region to meet the growing needs of our customers and significantly reduce emissions and water use,” Yates said in a statement.

The impetus for the project is two-pronged.

For one, electricity demand in the Asheville area has doubled over the past four decades, and the region’s power demand is expected to grow by another 15 percent over the next decade, Duke Energy said.

Further, Duke’s Asheville coal power plant is “must-run,” meaning it has to operate to maintain reliability, even when it’s not economical. This results in higher fuel costs passed onto North Carolina and South Carolina customers every month.

Duke said the new gas plant will have fewer environmental impacts and will be about 35 percent less expensive to operate than the existing coal plant.

The company also said it will continue removing existing coal ash at the site and will work to permanently close the site’s ash basins.

This story was originally published May 19, 2015 at 8:48 AM with the headline "Duke Energy outlines $1.1 billion plan to end coal era in Asheville."