Duke Energy Corporation 's deregulated brand, Duke Energy Sustainable Solutions, recently marked its entry into the Mississippi solar market with the acquisition of the 100 megawatt (MW) Wildflower solar project from Clearway Energy Group.
With the acquisition, the company takes another step in expanding its solar portfolio to achieve its clean energy goals.
Details of the purchase
In the year The Wildflower solar project, which will be completed by the end of 2022, will provide enough capacity to power approximately 21,000 homes. Duke Energy's first solar project in Mississippi is scheduled to come online in late 2023.
When operational, the project will provide up to 80MW of solar power produced by Toyota North America under a 15-year virtual power purchase agreement between the two companies. This will help Toyota manufacturing facilities to reduce the carbon dioxide emissions of their operations.
In addition, the transaction provides a long-term stable income from the project.
Growth prospects
Energy utilities in the United States are focused on reducing carbon emissions from their operations to provide clean and sustainable energy to their customers. The company boasts investment initiatives focused on renewable energy sources in its efforts to go green.
Recent EI reports show that 22% of US electricity generation will come from renewable sources by 2022 and 24% by 2023. This means a 20% increase in US renewable electricity generation by 2020. According to the report, solar and wind power will expected to represent an increase in renewable capacity within two years.
Duke Energy It has reduced 2021 carbon emissions by more than 44 percent since 2005. Duke Energy is now expanding its net zero goal by 2050 to include some Scope 2 and Scope 3 emissions.
Duke Energy has invested heavily in renewable energy projects to meet its goals. Duke Solar and Wind Energy has $5 billion in investments, and Duke owns and operates approximately 500 MW of solar PV projects across the country with more than 50 solar farms.
The company's recent acquisitions expand its renewable energy portfolio and fulfill its commitment to meet the 2050 goal.
Peer movement
Here are the utilities aiming to continue growing in renewable energy to meet green energy goals.
American Electric Power Company AEP's plans include increasing its renewable generation portfolio to 50% of total capacity by 2030. Investment forecasts for 2023-2027. This includes $8.6 billion in regulated renewable energy projects.
American Electric's long-term (three to five years) earnings growth rate is set at 6.2 percent. AEP shares are up 8.8% in the past month.
Ameren AEE aims to expand its renewable energy portfolio by adding 2,800 MW of renewable energy by the end of 2030 and a total of 4,700 MW of renewable energy by 2040 and 800 MW of batteries by 2040.
Ameren has long-term earnings growth of 7.2 percent. AEE shares have returned 10.8% in the past month.
CMS Energy CMS plans to spend $2.8 billion on renewable energy between 2022 and 2026, including investments in wind, solar and hydropower. The company aims to achieve zero methane emissions by 2030 and zero carbon emissions by 2040.
CMS Energy projects 8% long-term earnings growth. CMS stock has returned 9.1% to investors over the past month.
Price movement
Duke Energy's shares are up 9.2% in the past month.
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Zacks Rank
Duke Energy currently has a Zacks Rank #3 (Hold). You can see the full list of today's Zacks #1 Stocks Ranked #1 (Strong Buy) here .
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