Duke Energy Corp. plans to seek a second 20-year renewal of the operating licenses for 11 reactors in the Carolinas beginning with the 2,554-MW Oconee nuclear plant in 2021.
The licenses for many of Duke Energy's nuclear units in the Carolinas are set to expire in the 2030s. Duke Energy said in a Sept. 19 news release that an additional 20-year license will support its carbon-reduction goals while providing strong economic and reliability benefits.
"Our nuclear power plants have safely and reliably provided electricity to our Carolinas customers for decades," Preston Gillespie, Duke Energy's chief nuclear officer, said in the news release. "These plants generate clean and cost-effective power, provide thousands of well-paying jobs, and produce substantial economic benefits for the Carolinas. Renewing the licenses of these plants is important for our customers, communities and environment."
Duke Energy said it expects to file a license renewal application in 2021 with the U.S. Nuclear Regulatory Commission for the three reactors at its Oconee Nuclear Station in South Carolina, its largest nuclear plant. The company also plans to seek a second renewal of the operating licenses at the 1,870-MW Brunswick nuclear plant in Brunswick County, N.C.; the 2,310-MW Catawba plant in York County, S.C.; the 964-MW Shearon Harris Nuclear Power Plant in Wake County, N.C.; the 2,316-MW McGuire nuclear plant in Mecklenburg County, N.C.; and the 741-MW H.B. Robinson plant in Darlington County, S.C.
The announcement comes after Duke Energy unveiled plans Sept. 17 to achieve net-zero carbon emissions across its operations in six states by 2050 as part of a goal to reduce emissions by 50% compared to 2005 baseline levels in 2030. The company said Sept. 19 that preserving its nuclear fleet is "key to achieving these goals."
Duke Energy executives also have pointed to license extensions versus new build as the most likely path forward for the company's nuclear fleet.
"New nuclear is very tough because of just the upfront capital cost," Duke Energy Executive Vice President and CFO Steven Young told S&P Global Market Intelligence in November 2018. "And with technologies like low-cost gas and renewables coming down, it's just a challenge to build a new nuclear plant. I think license extension of existing nuclear units could be a very viable investment."
The nuclear units in the Carolinas are primarily owned and operated by Duke Energy subsidiaries Duke Energy Carolinas LLC and Duke Energy Progress LLC.
Dominion Energy Inc. and Exelon Corp. also are among the utilities seeking licenses to operate their nuclear plants for a total of 80 years.
