Duke Energy Takes Early Step Toward New Nuclear Build in North Carolina

By Charles Kennedy - Dec 30, 2025

Duke Energy has formally entered the early stages of nuclear development planning in North Carolina, submitting an early site permit (ESP) application to the U.S. Nuclear Regulatory Commission for land near its Belews Creek Steam Station in Stokes County.

The filing, announced on December 30, marks the first time Duke has pursued an ESP and reflects a broader effort by U.S. utilities to keep nuclear power on the table as electricity demand rises and decarbonization pressures intensify. While the move does not commit the company to construction, it significantly advances licensing groundwork and reduces long-term regulatory and financial risk should Duke later decide to build.

An ESP is an optional NRC process that evaluates environmental and site safety issues independently of a specific reactor design. By resolving these issues upfront, utilities can shorten timelines and lower uncertainty if projects proceed. Duke says the strategy is aimed at protecting both customers and investors as it evaluates next-generation nuclear options.

The application is technology-neutral and includes six potential reactor designs—four small modular reactors (SMRs) and two non-light-water reactors. Notably, Duke excluded large traditional light-water reactors, even though it already operates 11 such units across the Carolinas. The emphasis on SMRs underscores growing industry interest in smaller, factory-built reactors that promise lower upfront capital costs and more flexible deployment, though none have yet been built at commercial scale in the United States.

Company executives framed the submission as a measured step rather than a firm commitment. Duke Energy has not made a final investment decision, but if further evaluation supports the economics and performance of SMRs at the site, the utility plans to add up to 600 megawatts of advanced nuclear capacity by 2037. The first unit could enter service as early as 2036.

Nuclear power remains a central pillar of Duke’s long-term resource planning, particularly in the Carolinas, where coal retirements and load growth from data centers, manufacturing, and electrification are straining existing capacity. Unlike intermittent renewables, nuclear plants provide continuous baseload generation, a feature utilities increasingly value as grids become more complex.

The Belews Creek location already hosts a coal-fired plant, which could ease infrastructure and transmission challenges if a nuclear facility were eventually developed. Similar brownfield or adjacent-site strategies are being explored by other U.S. utilities seeking to replace retiring fossil assets without overhauling local grid connections.

Duke’s move comes amid renewed federal support for nuclear energy, including tax credits for existing plants and incentives for advanced reactors under recent U.S. energy and climate legislation. Still, the sector faces persistent hurdles, including cost overruns, long development timelines, and public skepticism - factors that make early-stage risk reduction especially attractive.

By pursuing an ESP now, Duke is effectively buying time and flexibility. Whether SMRs ultimately deliver on their promise remains uncertain, but utilities like Duke are signaling that nuclear power, in some form, is likely to remain part of the U.S. energy mix well into the next decade.

By Charles Kennedy for Oilprice.com