The energy companies are fighting over a $1.8bn (£1.3bn) contract for gas turbines and wind turbines that will be used to provide electricity to the state of Florida.
The contract between Duke and Florida Energy for the construction of the turbines was awarded in December, just two months after the two firms signed a deal for the gas turbines.
The contract was to be awarded to a Florida-based company called Duke Energy North America.
But the Florida-headquartered utility company pulled out of the deal, claiming that it had failed to provide enough financial assurances.
The deal was to have been worth about $1bn and was due to be completed in 2021.
But in the months since the deal was signed, Duke has taken a very different approach.
It has now announced it will be awarding the contract to a company called North American Wind Technologies, or NAWT, instead of Duke Energy.
The reason for the change in stance is that NAWL has been unable to meet the requirements that the US Department of Energy (DOE) set out for a successful contract to install wind turbines and other renewable energy technology.
Duke’s decision to go with the new company has caused concern among many environmentalists and politicians.
Florida’s energy sector is the second largest in the US, with more than 30% of the state’s electricity.
Its utility companies have been fighting against the proposed $1,000/megawatt-hour tax that would have been levied on electricity generated by wind turbines, solar panels and biomass.
It comes as a group of Florida Republicans has called on Florida Governor Rick Scott to reject the $1 billion in incentives for wind power and biomass projects.
“The governor is not going to take a $700 million tax break for wind, solar, and biomass,” said state Senator John Thrasher, a Republican who is running for governor in 2018.
“It is a political stunt and we need to get the job done.”
Scott has previously said that he would not sign the deal if the incentives were included.
“I will not sign a $500 million incentive package for wind and solar.
I don’t support it,” he said.”
We’re going to go ahead and look at the details of that and what happens with the incentives and what the state is going to be able to support.”
The move to award the contract in NAWTL comes after Duke Energy has been accused of overstepping its bounds.
Earlier this month, a group calling itself the Florida Power Alliance filed a lawsuit in federal court in Florida, claiming the state should not have awarded the contract at all, as the company did not provide enough assurances that it would be able meet the standards laid out by the DOE.
In a statement to Al Jazeera, Duke Energy said that NGWT “did not meet the DOE’s requirements for an investment in renewable energy projects” and that it was seeking additional assurances.
“In addition to NAWLT, Duke and its subsidiaries have provided support to NGWL, including over $20 million in loans, and the utilities have also provided support for NAWP, with $1 million of NAWTP loan guarantees,” the statement said.
The company also said that the company would provide “continued support” to NNWT as it moved forward with its project.
“With all of this uncertainty surrounding the project, the utility’s commitment to its customers has been and remains strong, and we have continued to work with our partners to support NNWL’s ongoing development of renewable energy,” the company said.
Florida Governor Rick Walker has said that his administration will not approve any new incentive deals unless they are tied to an ambitious target for the state to reduce its greenhouse gas emissions.
He said that if Florida does not meet its climate goals, it will need to renegotiate the contract.