NRG Energy, Inc.
) announced that its solar asset-base has crossed 1,200 megawatt
(MW) mark. Currently, the company can serve approximately one
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NRG Energy runs solar operations under its two subsidiaries -
NRG Yield, Inc.
) and NRG Solar LLC.
It is evident from the records that NRG Energy continues to
solidify its solar capacity through internal and inorganic growth
program. On Mar 27, 2014, the company acquired Roof Diagnostics
Solar, a residential solar company. This transaction will enable
the company to strengthen its presence in the retail space.
On Mar 4, 2014, the company and
The Boeing Company
) started construction of Guam's first solar power plant. Post
completion, the company will provide emission free energy to
As far as inorganic expansion strategy is concerned, NRG Energy
received approval from the Federal Energy Regulatory Commission
for the entire transfer of Edison Mission Energy ("EME") assets,
a unit of
), to the company. EME's asset base includes 10 gas-fired plants
in California, 4 coal-fired plants in Illinois and more than 30
wind projects in different states. The acquisition will enable
the company to add 8,000 MW to its generation portfolio.
Utilization of renewable energy is currently increasing primarily
due to its clean nature and a growing awareness among the masses
regarding its benefits. These influence utility providers to
shift their mode of power generation to solar, wind and water
from the fossil fuel. In 2013, installation of solar photovoltaic
(PV) in the U.S. increased 41% year over year and 29% of the
total new power generation capacity came from solar.
We remind investors that NRG Energy is strongly following
renewable energy expansion program. During 2013, the company
completed several important solar projects - Borrego Solar
Generating Station, Agua Caliente Solar Generating Station,
Kansas South Generating Station, Alpine Solar Generating Station,
California Valley Solar Ranch, TA-High Desert Generating Station.
We believe that the scheduled completion of these projects
enabled the company to scale up its thermal and PV projects
portfolio to more than double from the 2012 level.
As of Dec 31, 2013, NRG Energy had cash and cash equivalents of
around $2.25 billion. The company's cash flow from operating
activities was $1.27 billion. A strong cash position and
efficient cash generation capacity through operating activities
enable the company to increase alternate energy portfolio,
thereby meeting the government's renewable standard.
Princeton, N.J.-headquartered NRG Energy currently has a Zacks
Rank #3 (Hold).