Charlotte, North Carolina, January 16, 2026
Duke Energy has introduced a significant renewable energy initiative with a 50-megawatt battery storage system at the former Allen coal plant site on Lake Wylie. This $100 million project aims to enhance energy reliability, support the integration of renewable sources, and fulfill sustainability goals. The system, operational since November 2025, allows for the storage of excess energy generated during low-demand periods, ensuring it is available during peak usage times. Future plans include expanding storage capacity to meet growing energy demands.
Duke Energy Launches Major Renewable Energy Project on Lake Wylie
New battery storage system at the former Allen coal plant site enhances energy reliability and supports sustainability goals.
Charlotte, North Carolina
Duke Energy has made significant strides in its renewable energy transition with the launch of a 50-megawatt (MW) battery energy storage system at the former Allen coal plant site on Lake Wylie. The $100 million project commenced serving customers in November 2025 and is currently in the final testing phase. This innovative initiative is emblematic of Duke Energy’s commitment to modernizing the power grid and reducing reliance on fossil fuels in the Carolinas.
The newly installed battery system is designed to store excess energy generated during periods of low demand, particularly from the nearby Catawba nuclear station. This stored energy can then be released during times of peak demand, thereby enhancing grid reliability and supporting the integration of renewable energy sources. Notably, the project was completed on time and under budget, aided by federal investment tax credits that offset approximately 40% of the costs, including an additional 10% incentive for reinvestment in an energy community. These incentives are projected to yield significant savings for Duke Energy customers.
Future Expansion Plans for Battery Storage
In line with its commitment to sustainable energy solutions, Duke Energy has announced plans to expand its battery storage capacity further at the Allen site. Construction of a second, larger 167-MW battery system is slated to begin in May 2026. This new installation will utilize land that previously housed emissions control equipment from the now-demolished coal plant. Both of these battery systems are integral to Duke Energy’s 2025 Carolinas Resource Plan, which anticipates adding 6,550 MW of battery storage by 2035 to accommodate the region’s growing energy demands.
Transitioning from Coal to Renewable Energy
The transformation of the Allen site from a coal facility to a state-of-the-art battery storage location highlights Duke Energy’s dedication to cutting down carbon emissions and investing in cleaner energy alternatives. By repurposing existing infrastructure and capitalizing on federal incentives, Duke Energy aims to provide more reliable and cleaner energy to its customers across North Carolina and South Carolina.
Benefits of the New Battery System
The deployment of the battery energy storage system offers numerous advantages. By storing excess energy produced during off-peak hours and releasing it when demand is high, the system helps to stabilize the grid and reduce energy costs. Additionally, this approach aligns with broader trends in energy policy that prioritize sustainable and resilient energy solutions, ultimately benefiting both consumers and the environment.
Impact on Employment and the Local Economy
The project is also expected to stimulate the local economy by creating job opportunities in Gaston County and contributing to workforce development in the region. These investments in sustainable energy infrastructure strengthen the local economy while promoting environmental stewardship, effectively showcasing the successful intersection of job creation and ecological responsibility.
Conclusion
Duke Energy’s establishment of the battery storage system at the former Allen coal plant site marks a pivotal moment in the energy landscape of the Carolinas. By modernizing the grid and shifting toward renewable energy sources, Duke Energy is not only enhancing energy reliability but also fostering a sustainable future for the region. Residents and businesses can remain optimistic about the potential growth in the renewable energy sector, which promises to bolster both the economy and the environment. As we continue to witness such innovative projects in our community, it is crucial to support local businesses and remain engaged in Rock Hill SC’s economic future.
FAQ
What is the capacity of the new battery energy storage system at the former Allen coal plant?
The new system has a capacity of 50 megawatts (MW).
When did the battery system begin serving customers?
The system began serving customers in November 2025.
What is the total investment in the new battery system?
The total investment in the new battery system is approximately $100 million.
What federal incentives are associated with this project?
The project qualifies for federal investment tax credits covering approximately 40% of the costs, including an additional 10% incentive for reinvestment in an energy community.
What are Duke Energy’s future plans for battery storage at the Allen site?
Duke Energy plans to begin construction of a second, larger 167-MW battery system at the Allen site in May 2026.
How does this project align with Duke Energy’s broader energy strategy?
This project is part of Duke Energy’s 2025 Carolinas Resource Plan, which projects the addition of 6,550 MW of battery storage by 2035 to meet the growing energy needs of the region.
How does the transition from coal to battery storage impact carbon emissions?
The transition from coal to battery storage reflects Duke Energy’s commitment to reducing carbon emissions and investing in sustainable energy solutions.
How does the new battery system enhance grid reliability?
The battery system stores excess energy generated during periods of low demand and releases it during peak demand times, enhancing grid reliability and supporting the integration of renewable energy sources.
What is the significance of repurposing the former coal plant site for battery storage?
Repurposing the former coal plant site allows Duke Energy to leverage existing infrastructure, reducing capital costs and accelerating the deployment of renewable energy solutions.
How does this project benefit Duke Energy customers?
The project is expected to provide savings for Duke Energy customers through federal incentives and by enhancing grid reliability with cleaner energy sources.
What is the expected timeline for the second battery system at the Allen site?
The second battery system is scheduled to begin construction in May 2026, with plans to come online in the second half of 2027.
How does this project contribute to Duke Energy’s goals for renewable energy?
This project contributes to Duke Energy’s goal of modernizing the grid and reducing reliance on fossil fuels by investing in renewable energy infrastructure.
What is the role of the Catawba nuclear station in this project?
The Catawba nuclear station provides excess energy during periods of low demand, which is stored by the battery system and released during peak demand times.
How does the project align with federal energy policies?
The project aligns with federal energy policies by utilizing federal investment tax credits and reinvesting in an energy community, supporting sustainable energy development.
What are the environmental benefits of this project?
The project reduces reliance on fossil fuels, decreases carbon emissions, and supports the integration of renewable energy sources into the grid.
How does this project impact the local community?
The project provides new job opportunities at the Gaston County site and contributes to the local economy through investment in sustainable energy infrastructure.
What is the significance of the Allen coal plant’s retirement?
The retirement of the Allen coal plant marks a shift towards cleaner energy sources and reflects Duke Energy’s commitment to environmental sustainability.
How does this project support Duke Energy’s growth in the Carolinas?
The project supports Duke Energy’s growth by providing reliable and cleaner energy solutions to meet the increasing demand in the Carolinas.
What are the future plans for the Allen site?
Future plans for the Allen site include the construction of additional battery storage systems and the development of new energy infrastructure to support the region’s growth.
How does this project contribute to grid modernization?
The project contributes to grid modernization by integrating advanced energy storage solutions and reducing dependence on traditional fossil fuel-based power generation.
What is the expected impact of this project on energy prices?
The project is expected to help stabilize energy prices by providing a more reliable and efficient energy storage solution, reducing the need for expensive peak-time power generation.
How does this project align with Duke Energy’s sustainability goals?
The project aligns with Duke Energy’s sustainability goals by investing in renewable energy infrastructure and reducing carbon emissions.
What are the technical specifications of the new battery system?
The new battery system has a capacity of 50 MW and is designed to store energy for four hours, providing firm capacity during low-demand periods.
How does this project impact Duke Energy’s energy portfolio?
The project diversifies Duke Energy’s energy portfolio by incorporating large-scale battery storage, enhancing grid reliability and supporting renewable energy integration.
What is the role of federal tax credits in this project?
Federal tax credits play a significant role in offsetting the costs of the project, making it more affordable for Duke Energy and its customers.
How does this project affect the local job market?
The project is expected to create new job opportunities at the Gaston County site, contributing to the local economy and workforce development.
What is the significance of the Allen coal plant’s decommissioning?
The decommissioning of the Allen coal plant signifies a move towards cleaner energy sources and reflects Duke Energy’s commitment to environmental responsibility.
How does this project support energy independence?
The project supports energy independence by providing a reliable and sustainable energy storage solution, reducing dependence on external energy sources.
What are the environmental impacts of the new battery system?
The new battery system has minimal environmental impacts, as it stores energy for later use without emitting pollutants or greenhouse gases during operation.
How does this project contribute to energy resilience?
The project enhances energy resilience by providing a reliable source of stored energy that can be utilized during peak demand periods or emergencies.
What is the expected timeline for the second battery system at the Allen site?
The second battery system is scheduled to begin construction in May 2026, with plans to come online in the second half of 2027.
How does this project align with Duke Energy’s goals for renewable energy?
This project contributes to Duke Energy’s goal of modernizing the grid and reducing reliance on fossil fuels by investing in renewable energy infrastructure.
What is the role of the Catawba nuclear station in this project?
The Catawba nuclear station provides excess energy during periods of low demand, which is stored by the battery system and released during peak demand times.
How does the project align with federal energy policies?
The project aligns with federal energy policies by utilizing federal investment tax credits and reinvesting in an energy community, supporting sustainable energy development.
| Feature | Description |
|---|---|
| Battery Capacity | 50 megawatts (MW) |
| Total Investment | Approximately $100 million |
| Start Date | November 2025 for initial system |
| Future Plans | Construction of 167-MW battery system scheduled for May 2026 |
| Federal Incentives | Tax credits offset approximately 40% of costs, plus additional 10% for reinvestment in energy community |
| Grid Modernization Contribution | Enhances reliability and supports renewable energy integration |
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