NRG Energy, Inc.
) subsidiary, NRG Solar LLC is on its way to expand its solar power
generation portfolio. The company plans to develop projects, with a
capacity of over 11 megawatt (
), in collaboration with PsomasFMG LLC. The deal comprises a 7.3 MW
project at William S. Hart School District in Santa Clarita,
California and another project with a capacity of 3.3 MW in the
County of Orange, California.
NRG will be in charge of the financial resources and raw
materials, primarily power inverters and solar panels. On the other
hand, PsomasFMG will provide support in terms of the design and
construction of the project.
After completion of this project, the companies will sell
solar-generated electricity to the facility owners who sign the
power purchase agreements. The revenue-sharing will be done on the
basis of individual contributions for each project.
In November 2011, NRG and
) began the construction of a 250-megawatt project at California
Valley Solar Ranch. During the 2-year construction period, the
project is expected to create 350 jobs and inject $315 million in
the local economy.
During NRG's earnings conference call, the company announced its
plans to allocate approximately $553 million for environment
capital expenditure for the 2012-2016 span. The investment would be
made in compliance with the government's stringent environmental
rules and regulations.
Earlier, NRG acquired stakes in three Utility Scale Solar
facilities namely California Valley Solar Ranch, Agua Caliente and
Ivanpah for approximately $165 million as part of its efforts to
capitalize on the future growth opportunities in renewables.
As of December 31, 2011, NRG reported total electricity
generation of 25,135 MW, out of which 95 MW was contributed by
Utility Scale Solar and Distributed Solar segments. NRG Energy is a
pioneer in developing cleaner and smarter energy choices for its
The company is expanding its solar energy portfolio and
continues to maintain its dominance in the sustainable energy
space. The company has a large-scale photovoltaic and solar thermal
projects pipeline, with an approximate capacity of 2,000 MW, spread
across different locations in Southwestern United States and the
Western Hemisphere. The company expects the output to go up to 860
MW next year.
We expect that NRG is well positioned with a consistent cash
balance and is using the same to increase shareholder value through
share repurchases and expansion of its solar power generation
portfolio. The company entered into several agreements to acquire
solar power generation assets and distribution companies and
develop solar power plants with its partners.
NRG Energy currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
Based in Princeton, New Jersey, NRG Energy Inc. operates as a
wholesale power generation company. The company is also involved in
the trading of fuel and transportation services, energy trading and
related products in the United States and internationally.
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