Duke Energy Surrenders NC Wind Lease for $129 Million

Duke Energy agreed to voluntarily terminate its Carolina Long Bay offshore wind lease off the coast of North Carolina in a negotiated settlement with the United States Department of the Interior. The utility will receive $129 million—a partial reimbursement of its initial $155 million lease cost—to reinvest in grid enhancements, advanced nuclear technology, and natural gas generation for customers in the Carolinas.

The deal terminates a proposed 1.6-gigawatt project and represents the ninth wind energy project the Trump administration has terminated by agreement since taking office. The federal government has committed over $2.5 billion to similar buyouts with other firms, including TotalEnergies and Invenergy, as part of a broader strategy to prioritize conventional energy over offshore wind.

Environmental groups, including the North Carolina Sierra Club, condemned the decision as a blow to clean energy that worsens the state's energy affordability crisis. Additionally, California and a coalition of New England states have filed lawsuits challenging the legality of these federal buyback agreements. Duke Energy previously indicated it would avoid offshore wind in the foreseeable future, favoring solar energy with battery storage and nuclear power to meet carbon plan requirements.