San Diego Gas & Electric (SDG&E), a subsidiary of
), has entered into power purchase agreements ("PPA") to buy 62
megawatts ("MW") of capacity from five renewable energy projects
in California. These projects comprise three solar and two wind
Per a 20-year agreement, Sempra will buy 7 MW of solar power from
Northlight Power's NLP Valley Center and 20 MW of power from
Silverado Power, LLC's Zodiac projects. Both these solar projects
are located in San Diego County. NLP Valley Center is expected to
come online in Sep 2014 and Zodiac in May 2015.
The company will buy 20 MW of energy from E.ON Climate and
Renewables' Maricopa West project, according to a 15-year power
agreement. This project will be built in Kern County and is
expected to come online in Jan 2015.
In a 10-year agreement, the company will buy wind power from
Terra-Gen's 3.5 MW Oak Creek that will be built in Kern County.
This project is expected to come online in Jan 2014. Sempra has
entered into another 10-year agreement to buy 11.2 MW from San
Gorgonio Westwinds II projects that will be built at Riverside
County. This wind project is expected to begin operations in Jan
However, these five agreements have yet to be approved by
California Public Utilities Commission.
Sempra is on track to meet the state's renewable energy goal that
calls for generating 33% of energy from renewable sources by
2020. In 2011, the company entered into 23 renewable energy
contracts that resulted in 20.8% of energy produced from
In 2012, the company signed 13 such contracts, resulting in
20.3% of energy from renewables. The company believes that if the
same trend continues then it will be able to generate 25% of
renewable energy by 2016.
LACLEDE GRP INC (LG): Free Stock Analysis
NRG ENERGY INC (NRG): Free Stock Analysis
SEMPRA ENERGY (SRE): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Recently, the first large scale renewable energy project, namely
the NRG Solar Borrego Project, came online in San Diego County
which was developed by
NRG Energy Inc.
Currently, Sempra has six projects under construction in the
Imperial Valley. These projects include the Ocotillo Express Wind
Project that was connected to the Sunrise Powerlink in Dec 2012.
All these project developments have enabled the company to create
a well-balanced renewable portfolio that is a combination of a
broad spectrum of energy sources including solar, wind, biomass,
biogas and geothermal energy. The company presently retains a
short-term Zacks Rank #2 (Buy).
Other stocks worth considering are
The Laclede Group, Inc.
), both with a Zacks Rank #2 (Buy).
Based in California, Sempra Energy is an energy services holding
company involved in the sale, distribution, storage, and
transportation of electricity and natural gas.