Duke to reinvest $129M after canceling NC offshore wind lease

 Two months after the Trump administration canceled two large offshore wind energy leases, the US Department of the Interior (DOI) announced a settlement with Duke Energy.

The agreement, announced Monday by Interior Secretary Doug Burgum, allows Duke Energy, the state’s largest electrical producer and provider, to voluntarily terminate its federal offshore wind lease for its Carolina Long Bay project. The Carolina Long Bay project was planned around 22 miles south of Bald Head Island in Brunswick County and was expected to generate enough electricity to power more than 300,000 homes. 

Federal officials say the agreement allows Duke to redirect nearly $129 million previously tied to the offshore wind project toward investments in additional generating capacity and grid improvements. According to the DOI, those investments could include new natural gas generation, advanced nuclear technologies and other infrastructure designed to improve grid reliability while helping keep customer costs as low as possible. 

“President Trump’s vision of unleashing affordable, reliable American energy for our country’s communities and using common sense to put the American people first is being implemented,” said Burgum in a statement. “Duke Energy will now be able to convert a national security concern into projects that will lower the costs for its customers in North Carolina and surrounding states. The agreement is a win-win scenario that has become a hallmark for how the Trump administration operates.” 

Duke’s position on offshore wind has shifted significantly over the past year. In filings with the North Carolina Utilities Commission, the company concluded that offshore wind energy production is not currently the most reliable, cost-effective energy source, and the energy company would not be issue requests for proposals to pursue these projects. The utility cited rising project costs, lengthy development timelines and rapidly growing electricity demand driven by population growth and new industrial development. 

The move also comes as utilities across the Southeast face record electricity demand from manufacturing expansion, data centers, and population growth, increasing the need for reliable and affordable electrical generation. 

“This settlement allows Duke Energy to refocus $129 million in ways that directly benefit our customers and communities in the Carolinas,” said Kodwo Ghartey-Tagoe, Executive Vice President and Chief Executive Officer of Duke Energy Carolinas. “Under the agreement, Duke Energy will reinvest nearly $129 million in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible.” 

Discussions over utility rates have been a focus during the North Carolina General Assembly’s 2026 short session. Multiple bills, including SB 730, the Ratepayer Protection Act, and HB 1192, the Energy and Housing Affordability Act, have advanced through the legislative process, though neither measure has received final approval from lawmakers. 

Brian Balfour, senior vice president of research at the John Locke Foundation, said the settlement is a significant victory for North Carolina ratepayers, arguing it redirects investment away from costly offshore wind and toward more affordable and reliable sources of electricity. 

“This decision will translate into a win for North Carolina ratepayers,” Balfour told Carolina Journal. “Offshore wind is an incredibly inefficient means of generating electricity, meaning it is much more expensive and far less reliable than baseload sources of energy like nuclear and natural gas. North Carolinians expect – and deserve – affordable electricity when they need it. Duke Energy intends to use these funds to instead invest in either nuclear, natural gas, or some combination of both, which is a beneficial trade off and improvement for electricity customers.” 

The agreement marks another step in the Trump administration’s effort to move away from offshore wind and instead focus on expanding nuclear, natural gas and other reliable sources of electricity.

“Duke to reinvest $129M after canceling NC offshore wind lease” was originally published on www.carolinajournal.com.