Summary:
The U.S. Interior Department, under President Trump, has secured Duke Energy's agreement to terminate its offshore wind lease off North Carolina, part of a broader push against new wind farms. Duke Energy just gave up a lease that could have powered hundreds of thousands of homes.
Duke Energy acquired the offshore wind lease in 2022. According to WRAL, Duke Energy halted progress on the project in 2025 to evaluate expenses and circumstances. Now the U.S. Department of the Interior has reached an agreement with Duke to terminate the lease worth $129 million.
The Trump administration has also cancelled offshore wind leases held by Invenergy LLC and TotalEnergies SE. This follows a campaign promise by President Donald Trump to stop new wind farms and hinder other renewable energy projects. Yet electricity demand from data centers and factories has been climbing.
The White House's move to end the North Carolina lease is one element of a larger federal effort that has led to billions of dollars in offshore wind lease cancellations. Instead, Duke will invest the same amount in other generating capacity.
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Duke Energy plans to allocate the $129 million to nuclear power plants and electrical infrastructure improvements by year's end.
The cancellation of the Duke lease is part of a larger pattern under the Trump administration. Meanwhile, electricity demand from data centers and factories continues to grow.
The decision reflects a broader shift in federal energy policy. With the lease now canceled, the state loses a potential major source of renewable power just as its population and industrial electricity needs rise.
Duke's alternative investments in nuclear power - while more reliable in output - require longer lead times and face their own regulatory hurdles. The company already operates six nuclear reactors across the Carolinas and has sought extensions for their operating licenses, but new nuclear construction remains expensive and controversial.
North Carolina's electricity demand is projected to climb significantly in the coming decade, driven by data center growth, manufacturing expansion, and population increases. Duke Energy has been evaluating multiple generation sources to meet this demand, including nuclear uprates and grid enhancements. Losing the offshore wind lease eliminates a key renewable option from the state's energy portfolio, potentially increasing reliance on natural gas and coal in the near term.
Duke's nuclear fleet currently provides about 30% of the Carolinas' electricity, and the company has proposed uprating several existing reactors to add roughly 200 megawatts of capacity. However, even with these upgrades, the long lead times for new nuclear projects mean that the reinvested $129 million will not fill the gap left by the canceled wind lease for several years. State regulators have also expressed caution about the high upfront costs of nuclear expansion, which could pressure electricity rates for consumers and businesses alike.
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