Energy Efficiency, GHG Emissions, Industrial, Utilities  -  May 31, 2024

Amazon, Google, Microsoft, Nucor Partner for Clean Energy

Amazon, Google, Microsoft and Nucor announced agreements to explore new and innovative approaches to support carbon-free energy generation.

The companies signed memorandums of understanding (MOUs) in May and proposed developing new rate structures known as “tariffs” in the utility industry that are designed specifically to lower the long-term costs of investing in clean energy technologies like new nuclear and long-duration storage through early commitments.

The proposed Accelerating Clean Energy (ACE) tariffs would enable customers like Amazon, Google, Microsoft and Nucor to directly support carbon-free energy generation investments through innovative financing structures and contributions that address project risk to lower costs of emerging technologies. 

The ACE tariffs would facilitate beneficial on-site generation at customer facilities, participation in load flexibility programs and investments in clean energy assets, since those features are attractive to customers with large-scale energy needs.

The ACE framework also would include a Clean Transition Tariff (CTT), a feature enabling Duke Energy to provide individualized portfolios of new carbon-free energy to commercial and industrial customers. The CTT would match clean-energy generation and customer load to accelerate overall grid decarbonization. 

Duke Energy’s five-year capital plan will continue as planned, and the tariffs would be subject to regulatory approvals in North Carolina and South Carolina.

"As the world’s largest corporate purchaser of renewable energy, Amazon is committed to enabling new sources of carbon-free energy to help power our operations and the communities where our customers live and work," said Kevin Miller, Amazon Web Services Vice President of Global Data Center, in a statement. "With a footprint of data centers, fulfillment centers and corporate buildings across Ohio, the Carolinas and Florida, we’re excited to collaborate with Duke Energy to find new solutions that can help us achieve our Climate Pledge to be net zero carbon by 2040, and today’s agreement marks an important step in that journey."

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