Two dual-fuel power plants in North Carolina once scheduled to retire by 2035 will now operate at least through 2040 after a federal-backed modernization effort aimed at strengthening grid reliability.
The U.S. Department of Energy announced a $175 million investment package covering six projects nationwide, including upgrades at Duke Energy Carolinas’ Belews Creek Steam Station in Stokes County. The facility, located in Sauratown Township, has a current generation capacity of 2,220 megawatts and can burn both coal and natural gas.
The modernization effort is designed to improve reliability and availability by upgrading key infrastructure components. Federal officials say the work could also modestly increase generation capacity at the site. Last month, Duke Energy filed permits to evaluate the potential addition of small modular nuclear reactors at Belews Creek, signaling a broader long-term strategy for diversified energy production.
Energy Secretary Chris Wright framed the investment as part of a policy shift under President Donald Trump.
“For years, previous administrations targeted America’s coal industry and the workers who power our country, forcing the premature closure of reliable plants and driving up electricity costs,” Wright said. “President Trump has ended the war on American coal and is restoring common-sense energy policy. These investments will keep America’s coal plants operating, keep costs low for Americans, and ensure we have the reliable power needed to keep the lights on and power our future.”
The Belews Creek upgrades are part of a broader $525 million federal initiative aimed at modernizing coal infrastructure already connected to the national grid. The DOE says the strategy provides one of the fastest and most cost-effective paths to maintaining dependable power while preserving high-wage energy jobs, particularly in Appalachian communities.
Additional projects included in the six-site package are:
- Appalachian Power Co. facilities in Letart and Winfield, West Virginia
- Buckeye Power Inc. in Brilliant, Ohio
- Kentucky Utilities Corp. in Ghent, Kentucky
- Monongahela Power Co. in Maidsville, West Virginia
- Ohio Valley Electric Corp. in Cheshire, Ohio
Supporters argue that upgrading existing plants offers stability as energy demand rises, particularly with growth in manufacturing, electrification, and artificial intelligence-driven data centers.
Environmental groups, however, sharply criticized the move.
Manish Bapna, president and CEO of the Natural Resources Defense Council, accused the administration of prioritizing fossil fuels over cleaner alternatives.
“The 19th century called, and it wants its fuel source back,” Bapna said. “While Americans are demanding clean, affordable energy, the Trump administration is using our tax dollars to prop up the nation’s dirtiest, least efficient power plants.”
Bapna further argued that continued reliance on coal could increase health risks and utility costs, calling the policy “a raw deal for our wallets, our health, and our future.”
The debate highlights the broader national divide over energy policy, with the administration emphasizing reliability, grid resilience, and domestic energy production, while critics call for accelerated transition to renewable sources.
For now, Belews Creek and other coal facilities set for modernization appear poised to remain part of the U.S. energy mix well beyond their originally planned retirement dates.
