Public Service Enterprise Group Inc.
) unit PSEG Solar Source ("PSEG Solar") announced that it will
acquire 13-megawatt (MWdc) solar energy facility from juwi solar
Inc. ("JSI") for $22 million. This is PSEG Solar's 8th solar
project in seven states, taking its solar portfolio capacity to 106
The solar energy facility is situated 14 miles north of El Paso,
TX, next to PSEG Solar's El Paso Electric Newman Generating
Station. JSI is acting as the engineering, procurement and
construction contractor for the project. JSI has already started
construction and will utilize solar panels manufactured by
JA Solar Holdings Co., Ltd.
). The project is expected to be completed in 2014.
Post the completion of the acquisition, the solar project will be
named the PSEG El Paso Solar Energy Center and JSI will be in
charge of the project. PSEG Solar will sell the output from the
El Paso Electric Company
) under a 30-year power purchase agreement. The long-tem contract
will ensure steady future cash inflow for PSEG Solar, which it can
utilize for profitable ventures.
PSEG Solar has a strong business alliance with JSI and acquired
solar assets from the latter earlier as well. In Sep 2012, the
company acquired a 15-MWdc solar project from JSI for $50 million.
The facility is located in Milford, DE.
Newark, NJ-based Public Service Enterprise, through its two
important subsidiaries PSEG Power LLC and Public Service Electric
and Gas Company, provides utilities in the Northeastern and
Mid-Atlantic parts of the U.S.
Globally, demand for renewable energy is gradually rising primarily
on the back of growing awareness among the masses about its
benefits. Public Service Enterprise is currently focusing on
expanding its renewable portfolio through developing facilities and
During the first quarter, Public Service Enterprise's 4-MW
Californian solar project has started operations. In Dec 2013, the
company completed its 19.3-MWdc PSEG Badger 1 Solar Farm. On the
inorganic expansion front, in Dec 2013, PSEG Solar acquired two
utility-scale solar power plants totaling 4.4-MWdc from
Canadian Solar Inc.
Public Service Enterprise maintained a strong liquidity position
besides generating a stable operating cash flow. As of Mar 31,
2014, the company had available liquidity of around $4.11 billion,
including cash balance of roughly $0.66 billion. In the first three
months of 2014, Public Service Enterprise's operating cash flow was
$1.12 billion. A stable financial position supports Public Service
Enterprise's systematic investments in renewable ventures.
Public Service Enterprise currently has a Zacks Rank #3 (Hold).
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