Ameren Corporation’s ( AEE Quick Quote AEE - Free Report) subsidiary, Ameren Missouri, recently revealed its intent to acquire the Huck Finn Solar Project from EDF Renewables, thereby making headway in achieving its clean energy goal. The deal is part of Ameren Missouri’s goal of attaining long-term energy reliability and resiliency for its customers. Details of the Acquisition
Huck Finn, which boasts a solar capacity of 200 megawatts (MW), is lined up to be raised on the border of Missouri's Audrain and Ralls counties. This will be the largest-ever solar facility for the company and is expected to power approximately 40,000 homes. The project is anticipated to generate clean energy at the earliest by 2024. The acquisition involves a build-transfer agreement between Ameren and EDF Renewables.
Benefits of the Acquisition
With the Huck Finn acquisition, AEE aims to enhance the solar generation capacity of Missouri and make it available to Missourian customers at an affordable price. In this context, it is imperative to mention that Huck Finn is one of the state-of-the-art solar projects that is being designed to generate more than 25 times the amount of energy of Missouri's largest existing solar facility.
Meanwhile, the project entails economic benefits for the communities of Missouri as it is projected to generate more than 250 construction jobs and encourage the flowing of millions of dollars into the community over the life of the project.
Such widespread benefits, with solid solar power generation capacity, exemplify Ameren Missouri’s supremacy in duly achieving its clean energy goal of adding 2,800 MW to the new, clean renewable generation by 2030.
With this ninth facility in service, the company has added 360 MW of clean energy generation capacity to its portfolio.
Utilities in the United States are transitioning to renewable sources for energy generation as the country increases its focus on achieving eco-friendly ways for energy and curtailing dependence on fossil fuels. In this context, it is imperative to mention that overwhelming growth has been witnessed in solar and wind-based capacity additions in the United States.
While utilities work relentlessly to achieve their carbon-free goals, a cohort of utilities that banged the acquisition strategy to evolve in the renewable space includes:
In January 2022,
Brookfield Renewable Partners L.P. ( BEP Quick Quote BEP - Free Report) announced the acquisition of the clean power developer, Urban Grid, and its high-quality pipeline of projects comprising approximately 13,000 MW of utility-scale solar and 7,000 MW of energy storage capacity for $650 million.
The Zacks Consensus Estimate for Brookfield’s 2022 earnings indicates growth of 84.1% from the prior-year reported figure. Shares of BEP have returned 2.1% in the past six months.
In May 2022,
American Electric Power’s ( AEP Quick Quote AEP - Free Report) subsidiary announced plans to add three renewable energy projects totaling 999 MW. The projects represent $2.2 billion investments in clean, cost-effective resources.
The long-term earnings growth rate of American Electric is pegged at 6.2%. AEP shares have rallied 13.2% in the past year.
In November 2021,
Alliant Energy Corporation ( LNT Quick Quote LNT - Free Report) revealed its intent to acquire 200 MW of solar energy and 75 MW of battery energy storage from the Phase I and II of the Duane Arnold Solar Project, which would be developed by the wholly owned, indirect subsidiaries of NextEra Energy Resources, LLC in Linn County.
Alliant Energy boasts a long-term earnings growth rate of 5.7%. LNT shares have appreciated 3.9% in the past year.
Shares of Amerenhave gained 8.6% in the past year compared with the
industry’s growth of 3%. Image Source: Zacks Investment Research Zacks Rank
Ameren currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .