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Entergy (ETR) Seeks Permit for 225 MW of Solar Power Addition

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Entergy Corporation’s (ETR - Free Report) arm, Entergy Louisiana, recently filed a request with the Louisiana Public Service Commission seeking consent for the construction of two solar projects, with a combined production capacity of 225 megawatts (MW), to expand its renewable energy portfolio. The filing highlights approval for the purchase, construction and operation of two solar projects.

Through the projects, Entergy aims to take a step forward in attaining its carbon neutrality goals and move toward a more sustainable future.

Details of the Solar Projects

Per the proposal filed by Entergy, it seeks to get a nod for a 20-year purchase power agreement with Coastal Prairie Solar. The agreement will involve procuring solar power energy produced by its solar facility, which is poised to be built in Iberville Parish. The filing also involves seeking a permit for the construction and handling operations of the Sterlington Solar Facility in Ouachita Parish.

Subject to approval, the construction of the Iberville Facility is expected to commence in the spring of 2024, with operations likely to begin by the end of 2025. The other project, the Sterlington Solar Facility, is expected to reach commercial operation at the beginning of 2026.

Apart from the two solar projects, Entergy has also requested new solar resources within the recently approved green tariff Geaux Green Option or Rider GGO.

Entergy’s Renewable Energy Goal

Entergy strives to adopt more sustainable and clean energy resources for its customers to meet their energy demands. Its continuous efforts to diversify its mix of energy resources can be gauged by the strength of its renewable portfolio. The company doubled its renewable capacity over the past three years.

Entergy Louisiana’s existing renewable portfolio boasts a capacity of 280 MW of renewables, thus contributing 25% toward energy generation. Also, Entergy Louisiana recently received the nod for an additional 475 MW of solar power addition. Moreover, the unit has other projects lined up for approval in the near future.

All these projects, along with the aforementioned two projects, if approved, will facilitate its position as a renewable energy producer.

Going forward, to fortify its renewable capacity, the company intends to invest $6 billion in generation investments during the 2023-2025 period. Such a focused investment strategy tends to complement its goal to add more than 4,500 MW of capacity by the end of 2025. Entergy also aims at adding up to 14-17 gigawatts (GW) in service by the end of 2031.

Such an ambitious target will surely expand its footprint in the renewable energy space and bolster the company’s position in the booming next-generation energy market.

Peer Moves

Utilities are striving to strengthen their renewable portfolio energy generation mix to make their operations eco-friendlier. Per the latest report from the Energy Information Administration, 2023 may witness 54.5 GW of new utility-scale electric-generating capacity to the U.S. power grid, of which 54% is likely to come from solar resources.

In light of the aforementioned projection, Entergy’s recent filing and its other plans to augment its solar portfolio will surely assist the company in gaining momentum in renewable energy generation. Other utilities that are also moving toward the green energy generation mix are as follows:

In March 2023, Duke Energy’s (DUK - Free Report) arm, Duke Energy Florida, announced two new solar projects that will begin construction by the end of March in the Bay and Madison counties. The new projects are part of the company's community solar program, Clean Energy Connection.

Duke Energy has taken an initiative to expand the renewable asset base and aims to reach its target of net-zero carbon emissions from electric generation by 2050. The company already lowered its carbon emissions in 2021 by more than 44% since 2005 and is now expanding its 2050 net-zero goals to include Scope 2 and certain Scope 3 emissions.

In December 2022, American Electric (AEP - Free Report) proposed for off-take from new and existing solar and wind facilities located in the PJM service region and new solar facilities located in ERCOT to support the company's growing retail and wholesale loads in Texas and Ohio, including the city of Columbus community choice aggregation program.

American Electric’s investment strategy includes incremental investments in renewable generation projects across the United States. The company’s plans include growing its renewable generation portfolio to approximately 50% of the total capacity by 2030.  Its 2023-2027 capital investment forecast includes $8.6 billion in the regulated renewable plan.

In February 2023, Ameren’s (AEE - Free Report) arm, received approval for the planned acquisition of the company's largest-ever solar facility, a 200 MW solar installation in central Missouri.

Ameren targets to expand its renewable portfolio by adding 2,800 MW of renewable generation by the end of 2030 and a total of 4,700 MW of renewable generation by 2040 and 800 MWs of battery storage by 2040. The company also expects to add 1,200 MWs of natural gas-fired combined cycle generation by 2031.

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