Expected Growth
Duke Energy will unveil the details of an expanded five-year capital plan spanning $95 billion to $105 billion early next year, company officials said during a third quarter earnings call on Friday. The company's current 2025-2029 plan covers $87 billion.
The company has formed new internal teams tasked with accelerating generation project timelines and locking in deals with prospective large load customers, especially data centers, according to Brian Savoy, executive vice president and chief financial officer of Duke Energy. These teams have secured 3 GW of new electric service agreements with data centers so far this year.
Most projects signed this year will be completed in 2027, but this initial tranche of projects is just the beginning, Savoy said. The following year should see an even larger build-out, he said, with rapid load growth likely to continue into the early 2030s. Company leaders declined to specify how many data centers or large-load customers are currently negotiating with Duke Energy.
Additional Generation
Additions to the Duke Energy system could exceed 13 GW in the next five years, according to Duke Energy President and CEO Harry Sideris. That includes 1 GW of upgrades to existing generation assets and 7.5 GW of new natural gas generation, as well as new solar and battery storage projects, Sideris said.
The company has secured 19 natural gas turbines and selected sites for seven new gas plants.
New nuclear generation is also on the table, but Sideris said the company would need to find ways to protect against cost overruns and supply chain disruptions before any new nuclear projects could move forward.
“We'll continue to evaluate ... SMRs as well as large water reactors,” he said. “But again, nothing going forward until we have those other items resolved.”
Financing Plan
Although the company is still finalizing the details of its new five-year capital plan, Savoy said they expect to finance 30% to 50% of the plan with new equity or similar financing mechanisms.
Just how much equity the company issues will depend on how quickly Duke Energy can build new infrastructure to meet large-load demand, Savoy said.
“We're evaluating all these factors as well as customer affordability as we finalize our final capital plan,” he said.
