Duke Energy Corp.
) took over the largest solar generation facility in San
Francisco - the Sunset Reservoir Solar Power Project - from
Recurrent Energy. However, the financial terms of the transaction
were not disclosed.
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With a capacity of 4.5 megawatt (AC) this solar power system
consists of almost 24,000 solar panels mounted on top of the
Sunset Reservoir. The plant was developed and operated by
Recurrent Energy since 2010.
The power generated from the solar farm will be sold to the San
Francisco Public Utilities Commission for at least the next 25
This acquisition enables Duke Energy to expand its solar
footprint in California and also reveals the constant inroads of
solar into mainstream power generation. By 2020, the state is
committed to generate 33% of the electricity from sources like
wind, solar, geothermal, biomass, and small hydroelectric
facilities. The acquisition comes four months after Duke Energy
Renewables bought two commercial solar power projects, namely,
Highlander Solar 1 and 2, for an undisclosed amount from
Located near Twentynine Palms, Calif., both the projects will run
as a single operation as it is located almost next to each other.
Together, Highlander Solar 1 and 2 will generate 21 megawatts
(MW) of renewable energy, which is sufficient to power more than
4,000 average homes every year. Under a 20-year purchase power
agreement, all the electricity generated from the two projects
will be sold to
Currently, Duke Energy Renewables has more than 100 MW of solar
generating capacity from 16 various farms. Since 2007, Duke
Energy has invested more than $3 billion to grow its commercial
wind and solar business.
Recently, the utility's adjusted second quarter 2013 earnings
came in below our expectation and were also below the year-ago
figure by 14.7%. The lower numbers mainly reflect higher costs
and the impact of share dilution from the Progress Energy merger
and lower quarterly results at both the Commercial Power and
International Energy business units.
The company presently retains a short-term Zacks Rank #3 (Hold).
Others stocks worth considering in the space include Zacks Ranked
#1 (Strong Buy)
Huaneng Power International, Inc.
) and Zacks Ranked #2 (Buy)
Alliant Energy Corp.