CenterPoint Energy, Inc.’s (CNP Quick QuoteCNP - Free Report) subsidiary, CenterPoint Energy Indiana South, recently placed a request to purchase an additional 335 megawatts (MWs) of solar energy in South Western Indiana. The request, subject to approval from the Indiana Utility Regulatory Commission (IURC), involves two power purchase agreements (PPAs) with Oriden and Origis Energy.

 

Both the solar projects will be operational by 2023, if approved.

 

The PPA’s are part of CenterPoint’s ‘Smart Energy Future Plan’, which aims at generating nearly two-thirds of energy from renewable resources, for the company’s customers in southwest Indiana.

Per the terms of the proposed PPA, on being operational, the two solar facilities are expected to supply cost-effective, stable renewable energy to more than 70,000 homes or 12,000 commercial customers per year.

 

The proposed PPAs will provide a boost to CenterPoint’s ‘Smart Energy Future Plan’ that aims to provide a well-balanced energy mix for its 145,000 customers in southwest Indiana. It is also step toward helping electric customers save an estimated $320 million over the 20-year planning period.

In addition to the aforementioned PPAs, the company is awaiting approval from IURC on one other components of its electric generation transition plan.

In February 2021, the company placed request for approval to acquire a 300 MW solar array and an additional 100 MW PPA. In the same month, CenterPoint proposed plans to purchase additional solar power from Cl??nera, which is developing a solar project in Southwestern Indiana, under a 25-year contract.

 

The company has added 50 MW of universal solar in Troy, which joins its two 2 MW solar projects in Vanderburgh County. These developments along with the two proposed PPAs of 335 MWs will contribute favorably toward CenterPoint's goal of reducing operational emissions by 70% by 2035, thereby, avoiding approximately 700,000 tons of CO2 each year after completion.

Considering the rapidly expanding growth opportunities for the solar market, utilities apart from CenterPoint are enhancing their solar energy portfolio as well. 

 

For instance, earlier in August, AES Corporation (AES Quick QuoteAES - Free Report) teamed up with renewable energy projects developer, Borrego to build three utility scale solar projects in Michigan. The projects, which are expected to be online by mid-2022, will have a total installed capacity of 72 megawatt-direct current (MW-DC).

 

In August, American Electric Power (AEP Quick QuoteAEP - Free Report) subsidiary AEP Energy signed an additional long-term renewable energy purchase agreement with Doral Renewables for the second phase of the 360 MWdc Mammoth solar project in Indiana. American Electric targets to add 5910 MW of solar resource between 2021-2030.

 

In March, CMS Energy Corporation (CMS Quick QuoteCMS - Free Report) announced an agreement to purchase 140 MWs of clean, renewable energy. Under the proposed agreement, Consumers Energy would purchase 140 MWs from the solar facility for 25 years. The facility would serve about 70,000 residential customers.

In the past one year, shares of the company have gained 27.7% compared with the industry’s growth of 12%.

 

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

 

CenterPoint (CNP Quick QuoteCNP - Free Report) Proposes 335 MW Solar PPAs in Indiana

Teaser: CenterPoint Energy (CNP Quick QuoteCNP - Free Report) requests to purchase 335 MW of additional solar energy under two power purchase agreements with Oriden and Origis Energy. The projects will serve 70,000 homes. 

CenterPoint Energy, Inc.’s (CNP Quick QuoteCNP - Free Report) subsidiary, CenterPoint Energy Indiana South, recently placed a request to purchase an additional 335 megawatts (MWs) of solar energy in South Western Indiana. The request, subject to approval from the Indiana Utility Regulatory Commission (IURC), involves two power purchase agreements (PPAs) with Oriden and Origis Energy.

Both the solar projects will be operational by 2023, if approved.

The PPA’s are part of CenterPoint’s ‘Smart Energy Future Plan’, which aims at generating nearly two-thirds of energy from renewable resources, for the company’s customers in southwest Indiana.

Benefits of the Move

Per the terms of the proposed PPA, on being operational, the two solar facilities are expected to supply cost-effective, stable renewable energy to more than 70,000 homes or 12,000 commercial customers per year.

The proposed PPAs will provide a boost to CenterPoint’s ‘Smart Energy Future Plan’ that aims to provide a well-balanced energy mix for its 145,000 customers in southwest Indiana. It is also step toward helping electric customers save an estimated $320 million over the 20-year planning period.

Other Developments

In addition to the aforementioned PPAs, the company is awaiting approval from IURC on one other components of its electric generation transition plan. In February 2021, the company placed request for approval to acquire a 300 MW solar array and an additional 100 MW PPA. In the same month, CenterPoint proposed plans to purchase additional solar power from Cl??nera, which is developing a solar project in Southwestern Indiana, under a 25-year contract.

The company has added 50 MW of universal solar in Troy, which joins its two 2 MW solar projects in Vanderburgh County. These developments along with the two proposed PPAs of 335 MWs will contribute favorably toward CenterPoint's goal of reducing operational emissions by 70% by 2035, thereby, avoiding approximately 700,000 tons of CO2 each year after completion.

Peer Moves

Considering the rapidly expanding growth opportunities for the solar market, utilities apart from CenterPoint are enhancing their solar energy portfolio as well.  

For instance, earlier in August, AES Corporation (AES Quick QuoteAES - Free Report) teamed up with renewable energy projects developer, Borrego to build three utility scale solar projects in Michigan. The projects, which are expected to be online by mid-2022, will have a total installed capacity of 72 megawatt-direct current (MW-DC).

In August, American Electric Power (AEP Quick QuoteAEP - Free Report) subsidiary AEP Energy signed an additional long-term renewable energy purchase agreement with Doral Renewables for the second phase of the 360 MWdc Mammoth solar project in Indiana. American Electric targets to add 5910 MW of solar resource between 2021-2030.

In March, CMS Energy Corporation (CMS Quick QuoteCMS - Free Report) announced an agreement to purchase 140 MWs of clean, renewable energy. Under the proposed agreement, Consumers Energy would purchase 140 MWs from the solar facility for 25 years. The facility would serve about 70,000 residential customers.

Price Movement

In the past one year, shares of the company have gained 30.9% compared with the industry’s growth of 12.8%.

Give the Chart Here

Zacks Rank 

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