2026 SC Battery RFP

Duke Energy Carolinas, LLC and Duke Energy Progress, LLC are issuing a competitive request for proposals to procure approximately 400 megawatts (MW) of 4-hour duration battery energy storage systems (BESS) located in South Carolina. The solicitation targets approximately 300 MW in Duke Energy Carolinas and 100 MW in Duke Energy Progress, with a target split of approximately 200 MW in Utility Ownership Track (UOT) resources and 200 MW in third-party owned Energy Storage Services Agreement (ESSA) Track resources. Each facility must have a minimum capacity of 25 MW and a 4-hour duration at the as-bid capacity, with all projects achieving commercial operation by the end of 2032.

Market participants may submit proposals under two tracks: (1) Utility Ownership Track, where the developer transfers full ownership of a fully developed facility to Duke Energy for a fixed fee with a milestone schedule; or (2) Energy Storage Services Agreement Track, where the independent power producer retains ownership and sells the full energy storage capacity and output to Duke Energy via a 15-year fixed-price contract denominated in dollars per kilowatt-year. All facilities must be located in South Carolina and directly interconnected to the Duke Energy Carolinas or Duke Energy Progress transmission system. Facilities must obtain and maintain market-based rate authority from FERC and comply with specified cybersecurity requirements, prohibiting equipment identified under the Thornberry National Defense Authorization Act and FCC Secure Networks Act.

The RFP process includes a two-step evaluation methodology. Step 1 evaluation, occurring from September 1 through November 8, 2026, will rank proposals based on economic criteria (levelized cost of capacity) and non-economic criteria including development characteristics, technology and operational characteristics, and environmental compliance. A cure period of five business days is available for minor deficiencies. Step 2 evaluation, commencing in December 2026, incorporates interconnection costs from the Resource Solicitation Cluster Phase 1 study and requires a bid refresh on or about January 14, 2027, where refreshed prices must be lower than or equal to initial bids.

Key deadlines include: RFP issuance on July 15, 2026; Notice of Intent to Respond recommended by July 15, 2026; proposal submission deadline of August 5, 2026 at 12:00 PM EDT; Step 2 Proposal Security due approximately 10 business days after invitation to Step 2 (projected November 23, 2026); Step 1 rankings announced November 9, 2026; Phase 1 RSC results and finalists notification projected for March 17, 2027; and contracting window from March 18 through April 16, 2027 with a target of fully executed agreements by August 20, 2027. A non-refundable proposal fee of $15,000 is required for single-track proposals and $20,000 for dual-track proposals. Step 2 Proposal Security is $28/kW for battery facilities, posted by shortlisted projects. Charles River Associates, Inc. serves as the independent evaluator and is the sole point of contact for bidders, accessible through www.DukeEnergyRFPCarolinas.com.