Power generation company
NRG Energy Inc
) announced that its joint venture Agua Caliente solar project,
which is currently under construction, is more than two-thirds
complete and is delivering over 200 Megawatts (MW) to the electric
The other partners involved in this project are solar panel
maker MidAmerican Solar, a subsidiary of MidAmerican Energy
Holdings Company, and global solar service provider
First Solar Inc
). The US Department of Energy's Loan Program Office is financing
this project by providing a $967 million loan guarantee.
The solar facility is located in the Yuma County, Arizona and is
one of the world's largest operating photovoltaic solar plants. The
project's operational and maintenance responsibility lies with
First Solar Energy Inc. First Solar will supply its industry
leading modules to maximize the energy output from the farm,
contributing significantly to the power grid.
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The plant is expected to generate 290 MW of green energy and will
be completed by 2014. Pacific Gas & Electric Company, a
), has entered into an agreement to purchase the project's entire
generation output over a period of 25 years.
Going forward, we expect rapid progress of the pro-environment
project to meet the increasing demand for renewable energy. This
will lead to stable revenue growth for the company as the solar
business is expected to be cost-efficient and offer stiff
competition to conventional electricity generation in the coming
The combined venture is expected to provide economic benefits by
employing a large number of workers. Currently, the project employs
a daily average of 400 to 450 workers in construction.
NRG Energy's competitor
Pinnacle West Capital Corporation
) is also keeping track of its renewable business and plans to
develop and own up to 200 MW of solar power plants in Arizona.
Although NRG has not provided any earnings guidance, it reaffirmed
cash flow for full year 2012 to be in the range of $800-$1,000
million. The Zacks Consensus Estimates for the second quarter and
2012 are currently pegged at 21 cents per share and 86 cents per
Based in Princeton, New Jersey, NRG Energy is a wholesale power
generation company engaged in the ownership, development,
construction and operation of power generation facilities.
The company is also involved in the trade of fuel and
transportation services and the sale of energy, capacity and
related products in the United States and internationally. The
company presently has a Zacks #2 Rank which translates to a
short-term Buy rating.