Duke Energy brings new grid battery on line at former Allen coal plant

Rhea-AI Summary

Duke Energy (NYSE: DUK) brought a 50-MW, four-hour battery energy storage system online at the former Allen coal plant, a project that cost approximately $100 million and began serving customers in November with final testing completing this month. The company will begin construction in May on a 167-MW, four-hour BESS (its largest) on-site and plans a 115-MW BESS at Riverbend with late-2026 start. Both Allen systems qualify for a 40% federal investment tax credit. Duke projects 6,550 MW of battery additions in the Carolinas by 2035 to meet rising demand.

Positive

• $100 million 50-MW BESS completed under budget and ahead of schedule
• Construction to begin in May on a 167-MW four-hour BESS (company's largest)
• 40% federal investment tax credit applies to both Allen battery systems
• Company projects 6,550 MW of battery storage in Carolinas by 2035

Negative

• Planned third Allen BESS and regional facility are subject to state regulator approval
• Key projects span multi-year timelines (construction starts through end of 2028)

News Market Reaction

+1.10%

1 alert

+1.10% News Effect

On the day this news was published, DUK gained 1.10%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

First Allen BESS size: 50 MW, four-hour First Allen BESS cost: $100 million Second Allen BESS size: 167 MW, four-hour +5 more

8 metrics

First Allen BESS size 50 MW, four-hour Battery energy storage system brought on line at former Allen coal plant

First Allen BESS cost $100 million Cost of 50-MW battery project completed under budget and ahead of schedule

Second Allen BESS size 167 MW, four-hour Planned largest Duke Energy battery beginning construction in May

Federal tax credits 40% Investment tax credits offsetting cost of qualifying lithium-ion battery systems

Carolinas battery plan 6,550 MW Projected battery additions by 2035 in 2025 Carolinas Resource Plan

Peak homes served 5 million+ homes Battery storage capacity equivalence during peak energy use

Riverbend BESS size 115 MW, four-hour Planned BESS at retired Riverbend coal plant, targeted online in 2027

New facility jobs 20–50 employees Proposed regional operations, training and warehouse facility staffing

Market Reality Check

Price: $121.35 Vol: Volume 3,256,958 is 1.02x...

normal vol

$121.35 Last Close

Volume Volume 3,256,958 is 1.02x the 20-day average, indicating typical trading interest ahead of this update. normal

Technical Shares at 117.39 are trading below the 200-day MA at 120.38, reflecting a modestly subdued longer-term trend.

Peers on Argus

DUK gained 0.58% while key regulated electric peers like SO (+0.92%), D (+1.06%)...

DUK gained 0.58% while key regulated electric peers like SO (+0.92%), D (+1.06%) and EXC (+1.00%) also traded higher, suggesting a supportive utilities backdrop rather than a purely isolated move.

Common Catalyst Sector peers showed mild strength, with at least one (EXC) also releasing customer-focused winter reliability news, aligning with broader grid and reliability narratives.

Historical Context

5 past events · Latest: Jan 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 08	Philanthropy program	Positive	+1.0%	America250 grants over <b>$1 million</b> to community nonprofits across six states.
Jan 08	Earnings timing	Neutral	+1.0%	Announcement of <b>Q4 and 2025</b> results release and analyst call on Feb. 10.
Jan 07	Hydrogen project	Positive	-1.3%	Unveiling first U.S. system producing, storing and combusting <b>100% green hydrogen</b>.
Jan 06	Dividend declaration	Positive	+0.8%	Quarterly dividend of <b>$1.065</b> per share, extending <b>100-year</b> payment record.
Jan 02	Regulatory approval	Positive	+0.2%	SC approval of Helene cost recovery and securitization saving customers <b>$140M+</b>.

Pattern Detected

Recent Duke Energy headlines, including philanthropy, dividends, regulatory approvals and innovation projects, have mostly seen share price moves that align with the generally positive tone, with one divergence on a green hydrogen announcement.

Recent Company History

Over the past two weeks, Duke Energy has released a series of updates spanning philanthropy, earnings timing, innovation and regulation. A $1+ million America250 grant program and a scheduled Feb. 10, 2026 earnings release maintained a steady news cadence. Innovative projects like the DeBary green hydrogen system and long-running dividend payments of $1.065 per share reinforced its transition and income profile. South Carolina regulators’ approval of cost-recovery and grid measures highlighted constructive regulatory engagement. The new Carolinas battery project fits this pattern of grid investment and clean energy transition messaging.

Regulatory & Risk Context

Active S-3 Shelf · $4,000,000,000

Shelf Active

Active S-3 Shelf Registration 2025-09-30

$4,000,000,000 registered capacity

An effective Form S-3ASR dated 2025-09-30 registers up to $4,000,000,000 of PremierNotes, with a maximum net aggregate principal of $2,000,000,000 outstanding. A 424B3 filing on 2025-12-22 shows the shelf is being utilized, providing flexible unsecured funding capacity that coexists with the company’s large consolidated debt load.

Market Pulse Summary

This announcement details a major grid-storage build-out in the Carolinas, including a 50 MW battery...

Analysis

This announcement details a major grid-storage build-out in the Carolinas, including a 50 MW battery online and a planned 167 MW system, both benefiting from 40% federal investment tax credits. The 2025 Carolinas Resource Plan targets 6,550 MW of batteries by 2035, supporting reliability as regional demand rises. Historically, Duke Energy’s regulatory and infrastructure news has mostly aligned with share-price direction. Investors may watch execution timelines, capital allocation alongside the $4,000,000,000 PremierNotes shelf, and regulatory approvals for additional storage projects.

Key Terms

battery energy storage system (BESS), lithium-ion battery, investment tax credits, megawatt (MW)

4 terms

battery energy storage system (BESS) technical

"Duke Energy has brought on line a 50-megawatt, four-hour battery energy storage system (BESS)"

A battery energy storage system (BESS) is a large-scale setup that stores electricity in rechargeable batteries and releases it when needed, like a giant rechargeable battery for the power grid. It matters to investors because it helps smooth out supply and demand, capture surplus renewable power, provide backup and short-term grid services that can earn recurring revenue, and can boost the value of generation and transmission assets as demand for flexible energy grows.

lithium-ion battery technical

"Both lithium-ion battery systems qualify for federal investment tax credits"

A lithium-ion battery is a rechargeable energy cell that stores and releases power by moving lithium ions between two electrodes, like a pump moving water back and forth to hold and deliver energy. Investors care because these batteries power electric vehicles, portable electronics and grid storage, so factors such as cost, energy density, lifespan, and raw-material supply directly affect manufacturing costs, product competitiveness and long-term company profits.

investment tax credits financial

"Both lithium-ion battery systems qualify for federal investment tax credits"

Investment tax credits are government discounts on an investor’s tax bill tied to putting money into certain projects or assets, effectively returning a portion of the upfront cost as a tax saving. They matter to investors because they improve after-tax returns and can make otherwise marginal projects more profitable—like a manufacturer offering a coupon that lowers the net price of a major purchase—so they influence valuation, cash flow forecasts and investment decisions.

megawatt (MW) technical

"50-megawatt (MW) battery to be followed by 167-MW battery"

A megawatt (MW) is a unit of power equal to one million watts, used to describe how much electricity a generator, power plant, solar farm, or battery can produce or deliver at a given moment. For investors it signals scale and potential revenue — larger MW capacity usually means more energy to sell or store, and helps compare projects like power plants or renewable installations the way horsepower compares cars, influencing costs, earnings and project value.

AI-generated analysis. Not financial advice.

• $100 million, 50-megawatt (MW) battery to be followed by 167-MW battery, the company's largest, to support rapid growth across the Carolinas
• New energy infrastructure will reduce fuel costs, maximize 40% federal tax credits to save customers money

CHARLOTTE, N.C., Jan. 14, 2026 /PRNewswire/ -- Duke Energy has brought on line a 50-megawatt, four-hour battery energy storage system (BESS) at its former Allen coal plant on Lake Wylie, serving customers in North Carolina and South Carolina, and has unveiled plans for additional battery storage and new jobs at the Gaston County site.

What's happening: The first BESS, at a cost of approximately $100 million, was completed under budget and ahead of schedule, serving customers beginning in November. Final testing is being completed this month. Construction of a second BESS – Duke Energy's largest, a 167‑MW, four-hour system – will begin in May on 10 acres where the coal plant's now-demolished emissions control system once stood.

Both lithium-ion battery systems qualify for federal investment tax credits, which will offset 40% of the cost for Duke Energy customers. That figure includes an extra 10% for reinvesting into an energy community; the coal plant retired in December 2024.

Our view: "We're building new resources to keep the Carolinas' economy thriving, while reinvesting in a former coal plant community that helped power this region for decades," said Kendal Bowman, Duke Energy's North Carolina president. "Repurposing existing energy infrastructure and taking advantage of federal funding significantly offset costs for our customers while continuing to support rapid growth across the region."

Why it matters: Utility-scale battery systems are particularly useful for cold winter mornings before the sun comes up, filling the gap before solar generation is available. During low-demand periods, they can also store excess energy – such as the clean power generated by Catawba Nuclear Station just across Lake Wylie – for use during high-demand periods.

Duke Energy plans to make similar battery storage investments in multiple counties across the Carolinas. The company's 2025 Carolinas Resource Plan, now under review by state regulators, projects the addition of 6,550 MW of batteries by 2035 to protect reliability and meet growth needs in North Carolina and South Carolina. That's enough storage to power more than 5 million homes during times of peak energy use.

The big picture: Duke Energy's long-term plan maintains a diverse energy mix, adding solar, storage, nuclear and natural gas generation to meet electricity demand that's rising at an unprecedented pace. Across the Carolinas, customer energy needs over the next 15 years are expected to grow at eight times the growth rate of the prior 15 years.

Coming full circle: The plan also maintains Gaston County's legacy of supporting the company's customers across both states. Duke Energy's plans call for battery storage at both of the county's retired coal plant sites along the Catawba River, Allen (1957-2024 in Belmont) and Riverbend (1929-2013 in Mount Holly). Construction of the latter, a 115-MW, four-hour BESS, is expected to begin in late 2026, coming on line in late 2027.

"We are proud of how this site and its people continue to support our customers," said Bryan Walsh, Duke Energy's vice president of Regulated Renewables and Lake Services. "Multiple former Allen plant employees now work on our Regulated Renewables team, which maintains and operates the new batteries at Allen and elsewhere in the Carolinas. Duke Energy's test site for new battery technologies, its Emerging Technology and Innovation Center, is also in Mount Holly."

What's next: As part of the company's rate review now before the North Carolina Utilities Commission, Duke Energy has proposed a third BESS at Allen to come on line by the end of 2028, as well as a regional operations, training and warehouse facility for batteries and renewables that could house 20-50 employees. Plans for both are still evolving and subject to regulator approval.

Duke Energy Carolinas 

Duke Energy Carolinas, a subsidiary of Duke Energy, owns 20,800 megawatts of energy capacity, supplying electricity to 2.9 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.  

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.6 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,100 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious energy transition, keeping customer reliability and value at the forefront as it builds a smarter energy future. The company is investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage. 

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Bill Norton
24-hour media line: 800.559.3853

 

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SOURCE Duke Energy

FAQ

What did Duke Energy (DUK) install at the former Allen coal plant?

Duke Energy installed a 50-MW, four-hour lithium-ion battery energy storage system that began serving customers in November.

How much did the Allen 50-MW battery cost and was it on schedule?

The 50-MW BESS cost approximately $100 million and was completed under budget and ahead of schedule with final testing this month.

What is the size and start date for Duke Energy's next Allen battery (DUK)?

Construction of a 167-MW, four-hour BESS will begin in May on 10 acres where the emissions control system once stood.

Do Duke Energy's Allen batteries qualify for federal tax incentives?

Yes; both lithium-ion systems qualify for the 40% federal investment tax credit, including a 10% bonus for reinvestment in an energy community.

How much battery storage does Duke Energy project in the Carolinas by 2035?

Duke Energy's Carolinas Resource Plan projects adding 6,550 MW of batteries by 2035.

Are the planned Allen projects fully approved and when will additional projects come online?

Some projects are proposed and under regulatory review; a third Allen BESS is targeted by end of 2028 but requires approval.