Constellation Energy Group Inc. was selected by U.S. based privately held Toy retailer, Toys R Us, to build, own, operate and maintain North America's largest rooftop solar power project atop one of its New Jersey distribution centers.
Per the agreement, Constellation Energy will build and own the 5.38MW solar project. Electricity from the project is expected to provide an estimated 72% of the electrical needs of the distribution center. Work on the project is expected to be completed by the summer of 2011.
For the project Constellation Energy will use solar panels from United Solar, a subsidiary of Energy Conversion Devices Inc. . After completion the onus of maintaining the rooftop solar power system will lie with Constellation Energy. Toys R Us will purchase electricity from Constellation Energy under a 20-year power purchase agreement.
Per the estimate of Toys R Us, on a weather-adjusted basis the rooftop project is expected to produce approximately 6,362,000 kilowatt hours of electricity annually.
Generating the same amount of electricity using non-renewable sources would result in the release of an estimated 4,387 metric tons of carbon dioxide, the equivalent emissions from 860 passenger vehicles or that of the electricity used to power 532 homes annually, the company added.
Earlier Constellation Energy at the fag end of April announced that it would be acquired by Exelon Corporation (EXC - Analyst Report) for about $7.9 billion. The merger has been approved by the shareholders of both the companies and the union is subject to overcoming some regulatory hurdles. The companies expect to close the transaction by early 2012.
Baltimore based Constellation Energy is a supplier of power, natural gas and energy products and services for homes and businesses across the continental United States.
This merger will create the nation’s number one competitive energy products and services supplier by load and customers as well as the biggest competitive power generator having the largest nuclear fleet in the U.S. The consolidated entity will also produce power at much lower costs, helping them to jointly work on fuel innovation, increase efficiency and provide better options and rates to customers.
The Exelon-Constellation merger allows concentration of nuclear power generation and brings economies of scale. This is important in the aftermath of the Fukushima Dai-Ichi atomic plant disaster in Japan, which has raised questions about nuclear safety and is sure to stall future construction.
We currently have a Zacks #3 Rank (short-term Hold recommendation) on Constellation Energy shares. This implies that the stock is expected to perform in line with the broader U.S. equity market over the next 1–3 months. Our long-term Neutral rating on Constellation Energy also supports this view, suggesting investors against taking any position on the stock for the time being.