Full Breakdown
Trump Administration Pays Duke Energy $129 Million to Cancel North Carolina Offshore Wind Lease
6/30/2026, 4:10:16 AM
Settlement Overview
On June 29 2026 the U.S. Department of the Interior announced a settlement with Duke Energy that terminates the company’s lease for the Carolina Long Bay offshore wind project. The agreement reimburses Duke $129 million—the amount it paid for the lease—and obligates the utility to redeploy the funds in new generation capacity and grid upgrades in the Carolinas.
Policy-Shift Background
The deal follows a broader Trump-administration strategy to reverse the Biden administration’s offshore-wind expansion. Since taking office in 2025, President Donald Trump has pledged to halt new wind farms, calling them “costly” and “inefficient.” The administration has used negotiated buy-backs rather than litigation to unwind leases, redirecting more than $2.5 billion from projects held by Invenergy, TotalEnergies, and others toward natural-gas, nuclear, and transmission projects.
Timeline of Key Events
- May 2022: Duke Energy wins the Long Bay lease in a Bureau of Ocean Energy Management auction, estimating up to 1.6 GW of wind capacity.
- 2025: Duke pauses project development to reassess costs and demand.
- June 29 2026: Interior Secretary Doug Burgum announces the $129 million settlement, completing the lease termination.
Project Scale and Financials
The Long Bay lease was valued at $129 million and could have supported up to 1.6 GW of offshore wind—enough to power roughly 300,000–375,000 homes. Duke’s existing nuclear fleet supplies about 30 % of electricity in North and South Carolina; the company has proposed uprating existing reactors to add roughly 200 MW. The settlement redirects the same $129 million toward “new nuclear, natural-gas generation, and grid enhancements,” according to Duke’s statement.
Implications for Energy Mix and Grid
By eliminating a major renewable project, the settlement narrows North Carolina’s offshore-wind pipeline to a single early-stage site off the Outer Banks. State officials have recently weakened a statutory carbon-reduction target, citing rising electricity demand from data centers and manufacturing. Analysts argue the shift may increase reliance on natural gas and coal in the near term, while proponents cite potential reliability gains from nuclear and faster-to-market gas plants. The maritime industry also faces reduced demand for installation vessels and port infrastructure tied to offshore-wind construction.
Official Statements & Responses
The Interior Department framed the deal as “a win-win scenario” that converts a “national security concern” into affordable energy for consumers. Duke’s executive vice president Kodwo Ghartey-Tagoe described the settlement as a way to “refocus $129 million in ways that directly benefit our customers and communities in the Carolinas.” The Trump administration highlighted the move as part of its “energy dominance” agenda.
Criticism & Opposition
Environmental groups and clean-energy advocates contend the cancellation undermines state climate goals and delays decarbonization. Several states have filed lawsuits challenging the administration’s authority to unwind leases without following established offshore-leasing procedures. The John Locke Foundation’s Brian Balfour called offshore wind “an incredibly inefficient means of generating electricity,” arguing the settlement favors “more affordable and reliable sources.” Maritime stakeholders warn that continued lease cancellations could erode the domestic supply chain for offshore-wind installation.
Conflicting Reports & Gaps
Sources differ on projected output: Duke cited up to 1.6 GW, while a maritime report noted a combined 2.6 GW capacity for the two lease areas originally awarded. Estimates of homes powered range from 300,000 to 375,000. The settlement does not specify the exact split of the $129 million between nuclear, natural gas, and grid projects, leaving the timeline for new capacity unclear.
Verbatim Quotes
- “President Trump’s vision of unleashing affordable, reliable American energy for our country’s communities and using common sense to put the American people first is being implemented,” — Doug Burgum, Interior Secretary
- “This settlement allows Duke Energy to refocus $129 million in ways that directly benefit our customers and communities in the Carolinas,” — Kodwo Ghartey-Tagoe, EVP & CEO, Duke Energy Carolinas
- “Under the agreement, Duke Energy will reinvest nearly $129 million in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible.” — Kodwo Ghartey-Tagoe
- “Offshore wind is an incredibly inefficient means of generating electricity, meaning it is much more expensive and far less reliable than baseload sources of energy like nuclear and natural gas.” — Brian Balfour, Senior VP, John Locke Foundation
- “Duke Energy will now be able to convert a national security concern into projects that will lower the costs for its customers in North Carolina and surrounding states.” — Doug Burgum
Outlook
Duke plans to allocate the reimbursed funds before year-end, with pending decisions on nuclear site licensing and natural-gas plant permitting. Federal and state courts are expected to hear challenges to the lease-buy-back program, while the administration signals further cancellations of early-stage offshore-wind leases nationwide.
