) plans to purchase solar power, generated from an upcoming
15-megawatt ("MW") solar project, from 8minutenergy Renewables
LLC and Saferay Inc. The agreement currently depends on the
approval of California Public Utilities Commission.
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Folsom, Calif.-based 8minutenergy Renewables LLC and its German
partner Saferay Inc. will jointly construct the Woodmere Solar
Farm on 80 acres farmland in Kern County, Calif. The company
intends to begin construction from 2014. The facility is expected
to be online in Dec 2015.
Per the agreement, the output from the project would be sold for
a period of 20 years to PG&E Corporation.
These initiatives will subsequently enable PG&E Corporation
to meet the state of California's renewable portfolio standard of
generating 33% of power from renewable sources by fiscal 2020.
We appreciate PG&E Corporation's steady effort to expand its
renewable portfolio. In Jan 2013, the company received approval
from the California Public Utilities Commission to buy power from
SolarReserve. Per the agreement, output from the 150-MW solar
project would be sold to PG&E Corporation for 25 years.
Globally, utilization of renewable energy is rising primarily due
to its clean nature and a growing awareness among the masses
regarding its benefits.
Apart from PG&E Corporation, another utility major
) is also focusing on strengthening its renewable portfolio. In
May 2013, Exelon's unit Constellation Energy Resources, LLC
constructed a 2.6-MW solar generation project in N.Y. This
project is expected to be completed by 2013.
At the end of 2013, PG&E Corporation had a total power
generation capacity of approximately 4,000 MW from renewable
sources. During the first nine months of 2013, the company
invested $1.9 billion for several power purchase agreement, which
included few renewable energy-based deals. The company's steady
effort towards diversification of power generation portfolio will
enable it reduce carbon emission.
PG&E Corporation currently has a Zacks Rank #3 (Hold).
However, other utilities that are currently performing well
American Electric Power Co., Inc.
Alliant Energy Corporation
), each with a Zacks Rank #2 (Buy).