Southern California Gas Co. or SoCalGas, a subsidiary of
Sempra Energy
(
SRE
), has installed an advanced concentrated solar cogeneration system
built by Cogenra Solar of Mountain View, California. This newest
technology has been installed at SoCalGas' Energy Resource Center
in Downey to benefit its business.
Like the solar panels, the cogeneration system uses mirrors and
a tracking system to incarcerate the energy from the sun. The
sunlight captured is then focused onto an array of photovoltaic
solar collectors that simultaneously produces electricity and hot
water. The hot water thus produced is uniquely used in an air
conditioning system, as a substitute for electricity or natural
gas, to provide 10 tons of cooling. This is sufficient to cool two
medium-sized homes.
Despite taking less space than flat-panel photovoltaic systems,
the solar cogeneration technology provides more solar power and has
increased efficiencies. The solar cogeneration technology is
modular and is small enough in scale to be installed on commercial,
industrial and institutional building rooftops.
More than 50% of a building's electrical usage is required for
running air conditioners. These cogeneration systems with their
solar-driven technology capture heat during the middle of the day
and help in reducing energy usage when electric rates are at a
high. Undoubtedly, solar-powered air conditioning reduces customer
costs and greenhouse-gas emissions besides providing a sustainable
renewable alternative.
Sempra Energy is a southern California-based energy services
holding company involved in the sale, distribution, storage, and
transportation of electricity and natural gas. SoCalGas is the
first utility in the United States to test and demonstrate the
solar cogeneration technology. This move comes from the need to
accelerate the commercialization of new technology that uses solar
energy rather than the electric grid or natural gas. These measures
will bring the company close to achieving its target of generating
33% of renewable energy by 2020.
We believe the company presents a lower risk profile relative to
its peers. Moreover, its diversified basket of businesses insulates
its operations to a significant degree from regulatory rate risks.
However, these positives are offset by a lack of any near-term
positive triggers, along with near-term trepidation in natural gas
prices and pending regulatory cases. The company presently retains
a short-term Zacks #4 Rank (Sell). We have a long-term Neutral
recommendation on the stock.
Some of its main competitors are
Edison
International
(
EIX
) and
PG&E Corporation
(
PCG
)
EDISON INTL (EIX): Free Stock Analysis Report
PG&E CORP (PCG): Free Stock Analysis Report
SEMPRA ENERGY (SRE): Free Stock Analysis Report
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