Duke Energy Company‘s (DUK – (Free report) non-regulated trademark, Duke Energy Sustainable Solutions, recently marked its entry into the Mississippi solar market by acquiring a 100-megawatt (MW) solar project from Clearway Energy Group.
With the acquisition, the company takes a step forward in expanding its solar energy portfolio to achieve clean energy goals.
The Wildflower Solar project, which is expected to be built in late 2022, boasts enough capacity to power 21,000 homes. Duke Energy’s first solar project in Mississippi is expected to be commissioned by the end of 2023.
At the start of its operations, the project will supply up to 80 MW of solar power produced by Toyota in North America under a 15-year power purchase agreement between the two companies. This will help the Toyota manufacturing plant to reduce carbon emissions from its operations.
Furthermore, the agreement includes sustainable prospects of generating revenue from the project in the long term.
Utilities in the United States have increasingly focused on reducing the carbon footprint of their operations to deliver clean and sustainable energy to consumers. In their quest to be more environmentally friendly, companies are proud of their investment initiatives in renewable energy.
A recent report from the EIA suggests that 22% of US electricity generation by 2022 and 24% by 2023 will be from renewable sources. This means an increase from 20% of electricity production in the US by 2020 from renewable sources. The report includes solar and wind sources contributing to most of the increase in renewable capacity over the next two years.
Duke Energy has already reduced its carbon emissions by 2021 by more than 44% since 2005. It is now expanding its 2050 net-zero goals to include Scope 2 and Scope 3 emissions.
To achieve its goal, Duke Energy has invested heavily in renewable energy projects. DUK’s solar and wind businesses boast an investment of 5 billion dollars, while owning and operating around 500 MW of solar power projects in more than 50 solar plants across the country.
The latest acquisitions made by the company increase its renewable portfolio and add to its commitment to achieving its goal by 2050.
Utilities that are set to gradually expand in the renewable space to achieve green energy targets in their operations are as follows:
Electric Power Company of America‘s (AEP – Free Report) plans include increasing the renewable generation portfolio to around 50% of total capacity by 2030. Its capital investment forecast for 2023-2027 includes $8.6 billion in a revised managed plan.
American Electric’s long-term (three-to-five-year) revenue growth rate is pegged at 6.2%. AEP shares are up 8.8% in the past month.
Amen (AEE – Free Report) aims to expand its renewable portfolio by adding 2,800 MW of renewable generation by the end of 2030 and a total of 4,700 MW of renewable generation by 2040 and 800 MW of battery storage by 2040.
Ameren has a long-term earnings growth rate of 7.2%. AEE shares have returned 10.8% in the past month.
The power of CMS (CMS – Free Report) aims to spend $2.8 billion on renewables, including investments in wind, solar and hydroelectric power sources in the period 2022-2026. The company aims to achieve net-zero methane emissions by 2030 and net-zero carbon emissions by 2040.
CMS Energy has a long-term growth rate of 8%. CMS shares returned 9.1% to its investors over the past month.
In the past month, Duke Energy shares have risen 9.2% compared to the industry’s 6.1% growth.
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Duke Energy currently carries a Zacks Rank #3 (Hold). You can see Complete list of today’s Zacks #1 Position (Strong Buy) stocks here.