Environmental Footprint

2030 Challenge Update

Doug Esamann
Senior Vice President,
Strategy and Planning

In the 2007|2008 Duke Energy Sustainability Report, we described our challenge to cut our 2006 U.S. CO₂ emissions in half by 2030. In the following Q&A, Doug Esamann, senior vice president of strategy and planning, provides an update on that work.

Q:What has Duke Energy learned from the 2030 scenarios?

A:First and foremost, we realized how much we needed a specific, coherent vision like this to help us navigate to a low-carbon future. Our 2030 framework is being used throughout the company.
View the 2006 vs. 2030 Chart

We also learned a lot from sharing the work with various stakeholder groups. Some said, “You’re not doing nearly enough with regard to renewable generation and energy efficiency.” The revised 2030 scenario reflects our new assumptions.

Q:What needs to change to enable Duke Energy to halve its carbon emissions by 2030?

A:Technology and public policy are the biggest drivers of change. Smart grid technology, for example, has the potential to allow us to be much better at energy efficiency and offer products that give our customers more control over their power usage and costs. Carbon capture and sequestration technology might significantly reduce emissions. Legislative and regulatory changes could also pave the way for further growth in renewable energy, especially our expanding wind, solar and biomass businesses.

We also need to ensure our stakeholders understand the potential cost associated with reducing our carbon footprint.

Q:What will Duke Energy’s path to significantly lower carbon emissions look like?

A:I don’t expect the path to carbon reduction to be linear. Progress is bound to be irregular, since we’re affected by variables such as the pace of advances in technology, regulatory challenges, weather and customer demand for power, to name just a few. We have to stick to our plan to reduce our carbon emissions but be flexible enough to account for these uncertainties.

Q:Which of these variables pose the greatest risk to Duke Energy cutting its CO₂ emissions in half by 2030?

A:We don’t have federal legislation on carbon reductions yet. We don’t know what the expected reductions will be, what prices will be placed on carbon in the marketplace, or if utilities like ours will get any allowances to mitigate the economic impacts on customers. That’s especially important when you consider that a large percentage of our business is regulated. Without a clear road map, it’s difficult to tell state utility commissions and customers how much it will cost us to reduce carbon emissions, and this creates a bias for inaction.

Challenges

Supply reliable and cost-effective energy while minimizing our impact on the environment
Reduce greenhouse gases (GHGs) while meeting customers’ energy needs
Maintain momentum for renewable energy growth during this economic downturn
Plan for new generation during times of volatile fuel prices
Manage increasingly scarce water supplies in some regions
Monitor, influence and prepare for potential new rules associated with clean air, coal ash impoundments and mountaintop removal coal mining

Opportunities

Promote sound U.S. climate change policy
Demonstrate the need for energy efficiency and multiple power generation options
Increase our use of renewable energy

          2008 Highlights
          Refined the scenarios associated with our 2030 challenge to cut our 2006 U.S. CO2 emissions in half
Participated in collaborative efforts to promote balanced energy policy 
Took actions to reduce our GHG emissions
Grew our renewable energy business
Continued (Edwardsport) and began (Cliffside) construction of advanced coal stations
Conducted research on the potential for carbon capture and sequestration 
Continued to preserve the nuclear option by gaining U.S. Nuclear Regulatory Commission acceptance for review of our construction and operating license application for the Lee Nuclear Station

        