Publish Date: February 14, 2023
In 2021, Duke Energy Indiana proposed to build a 1,221 MW gas-fired Combined Cycle (CC) plant to begin operation in 2027. Since these plans were announced, the U.S. Federal Government has passed the Inflation Reduction Act of 2022 (“IRA”) to dramatically reduce the cost of clean energy resources, natural gas prices have spiked, and MISO has modified its capacity accreditation process. These changes justify a reassessment of Duke Energy’s plan and consideration of alternatives to the CC.
This report identifies a potential clean energy portfolio to match or exceed the energy and capacity provided by Duke Energy’s proposed gas-fired plant and conducts economic analysis to estimate the cost of the gas unit relative to the clean energy portfolio, including any excess energy sales and market purchases.
It concludes that following the extension of the Investment and Production Tax Credits (“ITC” and “PTC”), a clean energy portfolio consisting of solar, wind, and storage can provide equivalent energy and capacity at a lower cost than the proposed gas plant. The IRA makes the clean portfolio significantly more economic than the proposed CC, resulting in savings of $68.5 million in 2027, the year of deployment. Savings in subsequent years are anticipated to be even greater.
Please complete the form to download the assessment.