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ALLETE (ALE) Unit Reaches 50% Renewable Energy Supply Target

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ALLETE Inc. (ALE - Free Report) announced that its subsidiary Minnesota Power has successfully worked on the EnergyForward strategy to supply 50% electricity from renewable sources. In addition, the company — through its initiatives — is able to meet customer demand for reliable and affordable energy.

Minnesota Power was capable of reaching its 50% clean energy target and making the Nobles 2 wind project in southwestern Minnesota operational this month. The company has a 20-year power purchase agreement to purchase renewable energy from the Nobles 2 Wind Project.

Achievements Under EnergyForward 

Reaching the 50% renewable target is one of the company’s achievements under the EnergyForward plan. In addition, it was able to add nearly 900 MW wind energy to its energy mix, and retire or idle seven of its nine coal-based power plants. Minnesota Power also added 11 MW of solar energy and aims to add another 20MW in 2021. The company improved transmission and distribution networks, as well as added smart meters and other technologies to assist customers.

Utilities Focuses on Clean Energy

Utility operators are now concentrating to generate more electricity from clean sources. Usage of new technology and ongoing research and development activities are consistently lowering the cost of operating utility scale power units. The installation of battery storage across the United States is also supporting the development of renewable energy sources in the United States.

Per the U.S. Energy Information Administration (EIA) report, electricity generation from renewable energy sources will rise from 18% in 2019 to 20% and 21% in 2020 and 2021, respectively. Natural gas usage to generate electricity will increase to 39% in 2020 from 37% in 2019.

A few utilities have already declared plans to achieve carbon neutrality over the next few decades. Hence, a shift is quite evident. Utilities like Xcel Energy (XEL - Free Report) , Duke Energy (DUK - Free Report) and DTE Energy (DTE - Free Report) , among others, have set a target to become net-zero emissions companies by 2050.

Zacks Rank and Price Performance

ALLETE currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

In the past six months, shares of the utility have gained 9.8%, outperforming the industry’s 4% growth.

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