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AES Dedicates Battery Energy Storage Projects in California

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The AES Corporation (AES - Free Report) recently dedicated 227 megawatts (MW), 908 megawatt-hours (MWh) of energy storage projects in Southern California. Amid the rising electricity demand in California due to extreme weather conditions, the two projects are expected to reduce dependence on the grid and assist in the proper functioning and strengthening of the grid.

Details of the Projects

The Luna Battery Storage and Lancaster Area Battery Storage facilities, which boast a capacity of 500 MWh and 635 MWh, respectively, are claimed to be one of the largest battery storage facilities in California and worldwide.

The two projects combinedly will boost the storing excess energy capacity of the region, thus providing renewable energy to AES Corp.’s customers at times of peak demand in the most cost-effective way. The two projects can deliver sufficient energy that can power 170,000 homes in Southern California for up to four hours.

AES Corp.’s Initiatives in Battery Storage

AES Corp. is leading the utility industry's transition to clean energy by investing in sustainable growth and innovative solutions. The company is also taking initiatives to expand in the battery storage business and capitalize on strong demand.

As of Jun 30, 2022, the company signed or was awarded 1,618 MW of renewable and energy storage under long-term PPAs, while 3.7 gigawatts remained under construction. The backlog totaled 10,468 MW, which is expected to come online through 2025.

The company’s current initiative in the battery storage project, coupled with a strong backlog, should enable the company to set its strong footprint in the battery storage market. This will assist in delivering reliable and sustainable energy to its customers.

Peer Moves

With the entire utility sector rapidly transitioning to a green environment, utility providers that are increasingly investing in solar and battery storage projects include: 

Duke Energy’s (DUK - Free Report) subsidiary, Duke Energy Renewables, owns and operates approximately 500 MW of photovoltaic solar power projects at more than 50 solar plants across the country. It delivers customized solar solutions to utilities, municipalities, electric cooperatives and large business customers.

The company plans to add about 4,525 MW of solar power during the next 20 years.

Duke Energy’s long-term earnings growth rate is pegged at 6.1%. The Zacks Consensus Estimate for DUK’s 2022 sales suggests a growth rate of 6.6% from the prior-year reported figure.

Eversource Energy (ES - Free Report) currently has 70 MW of solar power facilities operating in Massachusetts. Its five-year forecast includes expenditures of $500 million to build an additional 280 MW of solar generation capacity.

Eversource Energy boasts a long-term earnings growth rate of 6.2%. The Zacks Consensus Estimate for ES’ 2022 sales indicates a growth rate of 10% from the prior-year reported figure.

WEC Energy (WEC - Free Report) is investing heavily in cost-effective zero-carbon generation like solar and wind. It has plans to build 2,400 MW of solar, wind and battery storage in the 2022-2026 period to further strengthen its renewable portfolio.

WEC Energy’s long-term earnings growth rate is pegged at 6.1%. WEC shares have rallied 3.3% in the past year.

Price Movement

In a year, shares of AES Corp. have declined 0.6% compared with the industry’s fall of 10.1%.

Zacks Investment Research
Image Source: Zacks Investment Research


Zacks Rank

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

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