Diversified energy company
Duke Energy Corporation
) plans to boost its renewable power generation capacity by adding
52 megawatt (MW) of solar energy in 2014-2015 in North Carolina.
Though this looks negligible when compared to its total regulated
generation capacity in excess of 52,000 MW, Duke Energy has
long-term plans to expand its renewable energy portfolio.
Long-Term Power Purchase Agreement
Duke Energy Renewables, a unit of Duke Energy, will set up three
solar plants in North Carolina. The electricity produced from these
units will be sold to George Washington University, American
University and George Washington University Hospital under a
20-year purchase agreement. These agreements guarantee an assured
return on solar investments.
The first of the three solar plants will be built in Pasquotank
County this year with a generation capacity of 20 MW. The other two
solar plants are scheduled for 2015.
Duke's North Carolina Solar Projects
Duke Energy launched its solar energy initiative in North Carolina
in 2009. Currently, its solar program in the state encompasses 25
sites. While selecting the sites for solar generation emphasis was
given on the site's proximity to the electrical grid and its solar
These investments were made with an objective to meet the renewable
energy standard of the state. The company is on course to meet
North Carolina's mandate of achieving 12.5% of generation from
renewable sources by 2021.
Renewable Generation: Actuals and Estimates
In 2013, Duke Energy generated 1,300 MW of electricity from
renewable sources in its states of operation, with the majority of
power coming from wind turbines.
Duke Energy plans to add 200 MW of wind assets in 2014 and make
further solar investments.
Increasing pollution from power generating plants has sparked off
new environmental regulations. We believe the latest proposal from
the Environmental Protection Agency to lower carbon dioxide
emissions from power plants by 30% by 2030 from 2005 levels will
see more investment in renewable energy.
Recently, another large utility
Dominion Resources Inc.
) enhanced its solar power portfolio by acquiring a 20 MW solar
plant in California.
In Feb, 2014, 392 MW Ivanpah Solar Electric Generating System
started commercial operation in Nevada. This is joint venture
NRG Energy Inc.
) and BrightSource Energy can power 140,000 homes.
Duke Energy Corporation carries a Zacks Rank #3 (Hold).
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