Amazon, Google, Microsoft, steel producer Nucor, and electricity provider Duke Energy have announced agreements to explore innovative approaches for promoting carbon-free energy generation. These efforts include developing new rate structures to share risks associated with emerging clean energy technologies.
At the White House Summit on Domestic Nuclear Deployment, the agreements introduced proposals for new rate structures in North Carolina and South Carolina. These structures aim to reduce long-term costs for clean energy investments through early commitments.
The proposed models feature Accelerating Clean Energy (ACE) tariffs, which seek to lower costs for new technologies by allowing large energy consumers to support clean energy projects through innovative financing and contributions. ACE tariffs would support on-site generation at customer facilities, participation in load-sharing programs, and investments in clean energy assets.
Additionally, the framework includes a new Clean Transition Tariff (CTT), designed to align clean energy generation with customer demand, accelerating grid decarbonization. Duke Energy stated that the CTT would allow it to offer tailored portfolios of new carbon-free energy to commercial and industrial clients.