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Clearway (CWEN) Acquires 264-MW Wind Asset From Castleton

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Clearway Energy, Inc. (CWEN - Free Report) acquires Mt. Storm, a 264-MW (Megawatt) wind asset in Grant County from Castleton Commodities International. This buyout will enhance its existing wind investments aimed at West Virginia, boost growth and provide geographic diversification.

Prior to this, in March, the company had financed and commenced the construction of a 55-MW wind farm in West Virginia. Also, in January, it began building Black Rock, a 115-MW wind farm and another at Mesquite Sky, a 345-MW wind farm in Texas.

Investments in Renewables

In December 2020, Clearway Energy announced that it will co-invest in nearly 1,204 MW of renewable projects, which are being developed by Clearway Energy Group. The renewable projects include 1,012 MW from five wind, solar and solar plus storage assets under development. The company amended its existing partnership with Clearway Energy Group for 419-MW Mesquite Star wind project, which will provide additional 27.5% of the project’s cash flows after first-half 2031.

The company has primary focus on North America, which protects it from negative currency fluctuation and sovereign risks. North America offers an excellent opportunity to expand its operation through acquisition of renewable, natural gas-fired generation and thermal infrastructure assets. Clearway Energy is engaged in structuring and targets a surplus clean energy project investment of 1.1 Gigawatt (GW) during the 2021-2023 period, which will enhance the company’s cash flow generation capability over the long term.

In 2020, the company utilized nearly $124 million to fund its capital expenditures. It has plans to make more strategic investments over the long term to strengthen its operations. High-quality renewable assets will continue supporting the company’s generation portfolio, which in sync with the current environmental regulations.

Clean-Energy Efforts

Companies across the globe are making noticeable efforts in transitioning toward a greener society and becoming more sustainable in the long term. Per International Energy Agency’s (IEA) latest estimates, the global renewable capacity is expected to grow by around 218 GW in 2021, almost 10% more than the 2020 levels. Particularly, countries like the United States, India and China are expected to see capacity growth in 2021.

As a result, along with Clearway Energy, other companies are undertaking measures to deliver clean energy and provide reliable services to its customers. Xcel Energy XEL increased its investment plans to $24.3 billion from $23.5 billion in the 2021-2025 time period to reflect its $750 million worth of new investment in wind project. In March, NiSource’s NI subsidiary NIPSCO entered into a long-term PPA and a build & transfer agreement for two renewable energy projects in Indiana with EDP Renewables North America LLC, the unit of EDP Renewables SA.

Dominion Energy D plans to invest $32.2 billion in the 2021-2025 time frame to bolster its existing infrastructure, of which 52% will be invested in zero-carbon generation and energy storage. It is in the process of adding 3,000 MW of solar or wind generation to the state of Virginia by 2022.

Zacks Rank & Price Performance

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

The stock has gained 5.7% in the past month, outperforming the industry’s rise of 1.2%.

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