States must take a critical eye to gas plants proposed over clean energy — SkimNews
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- Minnesota regulators directed Minnesota Power to examine lower-cost wind, solar and storage scenarios instead of new gas generation that would run afoul of the state’s carbon-free standard.
- North Carolina regulators rejected Duke Energy’s $584 million gas turbine, finding anticipated large-customer demand insufficient and the company’s analysis of cheaper battery alternatives inadequate.
- Utilities reported plans to build 24 GW of gas-plant capacity in 2025, a 570% increase from 2023, justified largely by projected data-center demand rather than current household and business needs.
- U.S. gas plants became more expensive to construct and slower to bring online from 2023 to 2025, with construction costs up 66% and development time up 23%; wind and solar have been cheaper than gas for nearly a decade.
- Duke Energy was found to have artificially capped energy storage and solar in its modeling to justify the need for new gas plants.
- Ratepayers can face 30 years of payments for gas infrastructure if data-center projections fall short, even as utilities recover approved project costs through customer rates before plants operate.
- Batteries are now cheaper than gas peaker plants globally, according to a recent study.
Why it matters: The stakes are concrete: utilities reported plans for 24 GW of gas capacity in 2025, a 570% increase from 2023, while North Carolina rejected a $584 million Duke Energy turbine over ratepayer risk. Minnesota’s alternative-analysis order puts wind, solar and storage into the comparison before regulators approve customer-funded fossil spending.
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