Interior to pay Duke Energy $129M to terminate Carolina offshore wind lease

Image: BOEM

The U.S. Department of the Interior has reached a settlement agreement with Duke Energy that will see the company voluntarily terminate its offshore wind lease, located in the Carolina Long Bay area and valued at $129 million, and reinvest that same amount in additional generating capacity.

Interior says that the settlement agreement provides partial reimbursement for an offshore wind lease that was very early stage and that “the funds will be redeployed to meet America’s energy demands of today and of tomorrow.”

“President Trump’s vision of unleashing affordable, reliable American energy for our country’s communities and using common sense to put the American people first is being implemented,” said Secretary of the Interior Doug Burgum. “Duke Energy will now be able to convert a national security concern into projects that will lower the costs for its customers in North Carolina and surrounding states. The agreement is a win-win scenario that has become a hallmark for how the Trump administration operates.”

“This settlement allows Duke Energy to refocus $129 million in ways that directly benefit our customers and communities in the Carolinas,” said Kodwo Ghartey-Tagoe, executive vice president and CEO of Duke Energy Carolinas. “Under the agreement, Duke Energy will reinvest nearly $129 million in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible.”

The agreement is the latest in a series of what have been called “pay not to play” deals reached by the Trump Administration as courts have consistently stymied its earlier efforts to block U.S. offshore wind development. Its first buyout deal, with TotalEnergies, is now being challenged in a lawsuit filed by seven state attorneys general.