Utility operator Dominion Resources Inc. ( D ) has acquired the 50 megawatt (MW) Pavant Solar project, situated in Millard County, UT from juwi solar ("JSI"), a renewable energy provider based in Boulder, CO. Dominion is working relentlessly to improve its renewable generation portfolio.
The solar plant is expected to begin commercial operation from the second half of 2015 and has already secured a 20-year power purchase agreement and an interconnection agreement. JSI O&M Group will monitor and maintain the solar project on behalf of Dominion during the initial years of operation.
Dominion's renewable generation assets are spread across several U.S. states. At present, Dominion's total renewable assets in operation or under development add up to nearly 3,479 MW, which is 14.7% of the total generation capacity of the company.
Apart from solar, Dominion also utilizes biomass, water and wind to generate electricity. Dominion produces nearly 850 MW of power from the aforesaid sources in Indiana, North Carolina, Virginia and West Virginia.
Dominion has sketched out its long-term plans to invest $14 billion from 2014 to 2018 to strengthen and enhance its existing energy infrastructure. The ultimate objective is to serve its customer base in a more effective and efficient manner.
We expect energy generation from renewable sources to continue to increase in the wake of stringent regulatory and emission control measures proposed by the U.S. government. Per a recent report from the U.S. Energy Information Administration, the usage of renewable energy in the U.S. will increase 1.9% year over year to 8.789 quadrillion Btu in 2014 and 3.7% to 9.118 quadrillion Btu in 2015.
Dominion Resources currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Unitil Corp. ( UTL ), PG&E Corporation ( PCG ) and Consolidated Edison, Inc. ( ED ). While Unitil Corp. and PG&E Corporation sport a Zacks Rank #1 (Strong Buy), Consolidated Edison holds a Zacks Rank #2 (Buy).
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