Duke Energy Corporation (NYSE:DUK)stock rose Wednesday after the company said it activated a new grid-scale battery storage project at a former coal plant site in the Carolinas.
The utility's latest battery system came online at the Allen coal plant site, and plans for larger storage projects are underway.
Duke Energy completed a 50-megawatt, four-hour battery energy storage system at the former Allen coal plant on Lake Wylie.
The project cost about $100 million and was finished under budget and ahead of schedule, the company said.
Final operational tests are wrapping up in January, Duke added.
Next Phase: Bigger Storage
Duke Energy plans to begin work in May on a second battery, its largest to date — a 167-MW, four-hour system on 10 acres at Allen's former emissions control site.
Both lithium-ion systems qualify for federal investment tax credits worth roughly 40% of costs, including an extra 10% for reinvesting in the local energy community.
"We're building new resources to keep the Carolinas' economy thriving," said Kendal Bowman, Duke Energy's North Carolina president.
He said repurposing the coal site and leveraging federal funds reduces costs for customers and supports regional growth.
Utility-scale batteries help bridge the gap during periods of low renewable generation, such as cold mornings before sunrise.
They also store excess power, notably from nearby nuclear generation, for use at peak demand.
Long-Term Storage Plans
Duke Energy's 2025 Carolinas Resource Plan calls for adding about 6,550 MW of battery capacity by 2035.
The utility said that amount of storage could support power needs for more than 5 million homes during peak demand.
Duke Energy said it will maintain a diverse energy mix of solar, storage, nuclear and natural gas to meet rapidly growing electricity demand.
The company serves about 8.6 million electric customers across several states including North Carolina and South Carolina.
DUK Price Action: Duke Energy shares were up 1.32% at $117.40 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Jonathan Weiss via Shutterstock
