Extreme weather events and shifting weather patterns are putting unprecedented strain on the utility industry, threatening aging infrastructure and highlighting the urgent need for enhanced grid reliability and strength. At the same time, utilities are under increasing pressure from regulators and consumers to integrate risk and resilience into their investment planning to ensure reliability and mitigate economic impacts over the long term. Duke Energy—which serves customers across the Midwest and Southeast—understood that they needed more than a one-size-fits-all-solution to meet these challenges. The utility determined that the vulnerabilities created by regionally specific extreme-weather events urgently needed to be identified and quantified across its operations, and that a tailored roadmap was needed to address them.
To help Duke Energy accomplish those goals, Guidehouse teams worked with the utility to conduct a Climate Resilience and Adaptation Study, a comprehensive initiative that focused on the company’s generation, transmission, and distribution system to assess vulnerabilities and develop a flexible framework for improving operational resilience across all of the territories that the utility serves. It was a first-of-its-kind assessment of the entire system, across all jurisdictions, of a vertically integrated utility.
The study incorporated projections and weather-pattern modeling across a roughly 25-year timeframe, from the present to 2050. Working closely with Duke Energy subject matter experts in discussions, interviews, workshops, and feedback sessions, Guidehouse focused on three critical priorities:
Duke Energy has already begun to operationalize the insights yielded by the study, taking action to harden its systems against extreme weather. One of the early priorities has been protecting battery storage systems, which enable the utility to respond to demand fluctuations and, through the use of microgrids, provide backup power in case of outages. Knowing that battery storage systems are particularly vulnerable to floods, the utility has already implemented some of the adaptive actions highlighted in the study by ensuring system designs accommodate predicted flood levels. Typical industry standards employ a “100+1” provision, which requires that equipment be elevated one foot above the projected flood depth in a 100-year flood plain. Duke Energy is using data-driven insights to elevate selected sites above those levels, a precaution that has already protected equipment from recent storms that caused flooding exceeding the 100-year threshold.
An example of these efforts is Duke Energy’s Powerline battery, which is being developed to serve the utility’s Florida service territory. The battery, a fast-responding resource that will enhance the overall reliability and resilience of the Florida electric grid, is in an area with known flooding risks. A hydrology study is being conducted to evaluate the project’s exposure to extreme storm events typically not included in FEMA flood studies. The study takes into account both riverine and coastally driven flood events, including hurricanes, and integrates a site-specific engineering model that includes all possible drainage areas contributing to the project site and surrounding areas. The rain-on-grid riverine model covers approximately 113 square miles. The study also provides site-specific results from three existing storm surge models. The results are being used to inform the final elevation of the site, which is to be set above the 500-year flood plain.
Last year alone, Duke Energy invested more than $4 billion to harden and modernize the grid. This included targeted undergrounding, reinforced flood barriers, year-round vegetation management, pole upgrades to steel and concrete in coastal areas, and self-healing technology, which instantly detects outages, isolates the problem, and reroutes power—often in less than a minute. Going forward, Duke Energy will continue to invest in these critical infrastructure assets with grid investments accounting for nearly half of its five-year, $83 billion capital plan.
These data-driven, targeted investments—informed by the Climate Resilience and Adaptation Study and Guidehouse’s broad industry expertise and best practices—are helping translate better risk and vulnerability data into long-term resilience. For the customers and communities that Duke Energy serves, it means confidence that the utility is making the crucial investments to keep the power on when it’s needed the most.
Guidehouse is a global advisory, technology, and managed services firm delivering value to commercial businesses and federal, state, and local governments. Serving industries focused on communities, energy, infrastructure, healthcare, financial services, defense, and national security, Guidehouse positions clients for AI-led innovation, efficiency, and resilience.