Duke Energy Renewables, a unit of
Duke Energy Corporation
), has completed its 36-megawatt (MW) Battery Storage Project at
Notrees Windpower Facility in West Texas. Xtreme Power had
designed and installed the system at Notrees and will continue to
operate the system. All the electricity generated from the
facility will be sold by Xtreme Power to
Wal-Mart Stores Inc.
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This battery power storage system is a part of Duke Energy's
Notrees 153 MW Windpower Project. Way back in 2009, in order to
match a grant provided by U.S. Department of Energy ("DOE"), the
company had announced its plans to install large-scale batteries
capable of storing electricity produced by the company's 153-MW
Notrees wind farm, located in Ector and Winkler counties.
Duke Energy is working directly with the Energy Reliability
Council of Texas ("ERCOT"). ERCOT operates the electrical grid in
Texas and handles 75% of the deregulated market. It indicates the
battery storage system either to dispatch stored energy to
increase frequency or to absorb energy to decrease frequency. The
largest battery power system will help the System Operator to
maintain a balance between supply and demand with immediate
feedback of frequency changes or other unpredicted events.
Battery storage is an important innovation to address the
variability of wind and solar energy generation. Besides being
environment friendly, the wind power facility provides flexible
capacity to ERCOT. The frequency of electricity traveling
throughout the power grid will be stabilized with the help of
Apart from increasing the supply of renewable energy, the storage
unit will ease wind farm performance by absorbing power from the
wind farm at times of low demand for power and generate more
power when it is required.
In Jan 2013, Duke Energy announced the completion of its
largest-ever windpower construction projects - Los Vientos I and
II - in south Texas, adding 402 megawatts (MW) to the company's
renewables fleet. Therefore, apart from Notrees Windpower
Project, Duke Energy has three wind power projects in Texas
Sweetwater in Nolan County; Ocotillo in Howard County and Los
Vientos I and II.
In order to meet the renewable energy standards, many other
energy companies are moving towards wind projects. In Dec 2012,
Sempra U.S. Gas & Power, a subsidiary of
) and BP Wind Energy, a unit of
), announced that their Auwahi Wind facility on Maui has come
online and has started to provide commercial operation.
Based in Charlotte, North Carolina, Duke Energy is a diversified
energy company with a portfolio of domestic and international,
natural gas and electric, regulated and unregulated businesses,
which supply, deliver, and process energy for customers in North
America and selected international markets. Duke Energy
Corporation's U.S. electricity and gas operations is spread over
the Carolinas, Florida, Indiana, Kentucky and Ohio that helps in
generating a relatively stable and growing earnings stream.
However, we remain concerned due to present unfavorable macro
backdrop, predominantly fossil-fuel based generation assets,
tepid demand for electricity, a sudden change of its CEO and
pending regulatory cases. The company presently retains a
short-term Zacks Rank #3 (Hold).