Back to top

Analyst Blog

NRG Energy Inc.’s (NRG - Analyst Report) division NRG Solar announced the commencement of operation at its 26 megawatt (MW) Borrego I Solar Generating Station, in northeast of Borrego Springs, California. The (AC) photovoltaic facility will generate adequate energy to power around 9,000 homes a year.

Electricity generated at this newly installed unit will be bought by San Diego Gas & Electric for a period of 25 years. These units are intended at reducing NRG Energy’s dependence on fossil fuels that provide clean energy to the customers.                                                                            

Apart from Borrego I Solar Generating Station, NRG Energy has eight projects lined up. These include the Agua Caliente, Avenal, Blythe, California Solar Valley Ranch and Ivanpah Solar Electric Generating System in California which are presently in the construction phase. Alpine Generating station in California, Avra Valley in Arizona and Roadrunner in Mexico are the company’s completed projects that are now in service.

The latest solar project will enable the company to reduce carbon dioxide emissions by about 19,000 tons and is expected to provide green energy sourced power at cost-competitive prices.

The Borrego I Solar Generating Station project is another important addition to NRG Energy’s green asset portfolio as it will support California’s proposed 33% renewable energy target. The company’s strategic solar programs will help it to maintain its momentum given the U.S. government’s steps towards promoting clean electricity in the future.

To meet the environmental legislations, apart from NRG Energy, other utility providers including ALLETE, Inc. (ALE - Snapshot Report), Sempra Energy (SRE - Analyst Report) and Northeast Utilities (NU - Analyst Report) also invest substantially to develop and upgrade their renewable emission-free utility assets.

It is evident from past projects that NRG Energy is also jumping on this bandwagon. The company continues to convert its existing generation bases into cost-effective units and is investing $100 million in building comprehensive electric vehicle infrastructure.

Recently, NRG Energy started operations of its 66 MW Alpine Generating station in Los Angeles County, California. We believe these initiatives will subsequently improve the company’s earnings.

However, fossil fuels remain the most popular among energy producers owing to their abundance in the U.S. These sources provide stiff competition to renewable sources.

Princeton, NJ-based NRG Energy together with its subsidiaries operates as an integrated wholesale power generation and retail electricity company. The company currently has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%