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).