We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CMS Energy (CMS) to Transform Coal Farm Into 85 MW Solar Project
Read MoreHide Full Article
CMS Energy Corporation (CMS - Free Report) recently announced its plans to establish an 85-megawatt (MW) solar array project on the site of its previously closed Karn coal facility. With a strong focus on expanding its clean energy portfolio, the company ceased operations of its Karn coal facility in June to meet its target of net-zero carbon emissions by 2040.
The solar array project is in the early stages of development and is likely to be operational by 2026. On completion, the project will have the capacity to power nearly 20,000 homes.
CMS Energy’s Clean Energy Efforts
CMS Energy seems to be steadily moving toward its target of achieving net-zero carbon emissions as it has successfully reduced its carbon dioxide emissions by more than 30% since 2005 and achieved 33% combined renewable energy and energy waste reduction through 2022.
Apart from reducing its carbon footprint, CMS Energy is also progressively expanding its renewable portfolio and appears to be investing vigorously in solar and wind capacities. The company aims at spending $3.1 billion on renewables, which includes investments in wind, solar and hydroelectric generation resources, in the 2023-2027 period. The latest solar facility announcement seems to be part of this investment only.
The company also intends to expand its renewable energy portfolio by adding nearly 8,000 MW of solar generation by 2040. Consumers also plan to deploy battery storage beginning in 2024, with 75 MW of energy storage by 2027 and an additional 475 MW by 2040.
Such an aggressive investment strategy should assist the company in duly achieving its renewable energy target.
Peer Moves
The latest report from the U.S. Energy Information Administration suggests that 18% of the U.S. electricity generation in 2024 will be from combined utility-scale solar and wind generation. This entails a surge from 16% of the U.S. electricity generation expected in 2023. Hence, utilities like CMS Energy have enough scope to expand their footprint in the U.S. renewable energy market.
Other utilities that have been steadily increasing their exposure in the U.S. renewable space are as follows:
American Electric Power Company (AEP - Free Report) : 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, out of which a total of $5.2 billion has been approved, with additional pending approval of $1.7 billion. AEP plans to add 17 GW of new renewable sources between 2023 and 2032.
Apart from investments in renewable energy, American Electric Power is also rapidly reducing its carbon dioxide (CO2) emission rate to promote green energy. Its intermediate goal is an 80% reduction from the 2005 CO2 emission levels from the company’s generating facilities by 2030, and the long-term goal is net-zero CO2 emissions from its generating facilities by 2045.
Ameren (AEE - Free Report) : The company plans to offer electricity through cleaner and more diverse sources of energy generation, including solar, wind, natural gas, hydro and nuclear power. To this end, Ameren targets to expand its renewable portfolio by adding 2,800 MW of renewable generation by the end of 2030, 400 MW of battery storage by 2035 and a total of 4,700 MW of renewable generation and 800 MW of battery storage by 2040.
AEE also expects to add 1,200 MW of natural gas-fired combined cycle generation by 2031 and 1,200 MW of additional clean dispatchable generation by 2043. Apart from investing in renewable projects, Ameren is also closing its coal-fired plants to reduce carbon dioxide emissions and promote green energy.
Duke Energy (DUK - Free Report) : The company has taken the initiative to expand the renewable asset base and aims to reach its target of net-zero carbon emissions from electric generation by 2050. Duke Energy already lowered its carbon emissions from 139 million metric tons in 2005 to 77 million metric tons in 2022.
Going forward, DUKE plans to invest $40 billion in zero-carbon generation, such as solar, wind and battery storage resources, and extend the life of its nuclear fleet and approximately $5 billion in hydrogen-enabled natural gas technologies.
Price Movement
In the past month, shares of CMS Energy have decreased 4.8% compared with the industry’s decline of 7.4%.
Image: Bigstock
CMS Energy (CMS) to Transform Coal Farm Into 85 MW Solar Project
CMS Energy Corporation (CMS - Free Report) recently announced its plans to establish an 85-megawatt (MW) solar array project on the site of its previously closed Karn coal facility. With a strong focus on expanding its clean energy portfolio, the company ceased operations of its Karn coal facility in June to meet its target of net-zero carbon emissions by 2040.
The solar array project is in the early stages of development and is likely to be operational by 2026. On completion, the project will have the capacity to power nearly 20,000 homes.
CMS Energy’s Clean Energy Efforts
CMS Energy seems to be steadily moving toward its target of achieving net-zero carbon emissions as it has successfully reduced its carbon dioxide emissions by more than 30% since 2005 and achieved 33% combined renewable energy and energy waste reduction through 2022.
Apart from reducing its carbon footprint, CMS Energy is also progressively expanding its renewable portfolio and appears to be investing vigorously in solar and wind capacities. The company aims at spending $3.1 billion on renewables, which includes investments in wind, solar and hydroelectric generation resources, in the 2023-2027 period. The latest solar facility announcement seems to be part of this investment only.
The company also intends to expand its renewable energy portfolio by adding nearly 8,000 MW of solar generation by 2040. Consumers also plan to deploy battery storage beginning in 2024, with 75 MW of energy storage by 2027 and an additional 475 MW by 2040.
Such an aggressive investment strategy should assist the company in duly achieving its renewable energy target.
Peer Moves
The latest report from the U.S. Energy Information Administration suggests that 18% of the U.S. electricity generation in 2024 will be from combined utility-scale solar and wind generation. This entails a surge from 16% of the U.S. electricity generation expected in 2023. Hence, utilities like CMS Energy have enough scope to expand their footprint in the U.S. renewable energy market.
Other utilities that have been steadily increasing their exposure in the U.S. renewable space are as follows:
American Electric Power Company (AEP - Free Report) : 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, out of which a total of $5.2 billion has been approved, with additional pending approval of $1.7 billion. AEP plans to add 17 GW of new renewable sources between 2023 and 2032.
Apart from investments in renewable energy, American Electric Power is also rapidly reducing its carbon dioxide (CO2) emission rate to promote green energy. Its intermediate goal is an 80% reduction from the 2005 CO2 emission levels from the company’s generating facilities by 2030, and the long-term goal is net-zero CO2 emissions from its generating facilities by 2045.
Ameren (AEE - Free Report) : The company plans to offer electricity through cleaner and more diverse sources of energy generation, including solar, wind, natural gas, hydro and nuclear power. To this end, Ameren targets to expand its renewable portfolio by adding 2,800 MW of renewable generation by the end of 2030, 400 MW of battery storage by 2035 and a total of 4,700 MW of renewable generation and 800 MW of battery storage by 2040.
AEE also expects to add 1,200 MW of natural gas-fired combined cycle generation by 2031 and 1,200 MW of additional clean dispatchable generation by 2043. Apart from investing in renewable projects, Ameren is also closing its coal-fired plants to reduce carbon dioxide emissions and promote green energy.
Duke Energy (DUK - Free Report) : The company has taken the initiative to expand the renewable asset base and aims to reach its target of net-zero carbon emissions from electric generation by 2050. Duke Energy already lowered its carbon emissions from 139 million metric tons in 2005 to 77 million metric tons in 2022.
Going forward, DUKE plans to invest $40 billion in zero-carbon generation, such as solar, wind and battery storage resources, and extend the life of its nuclear fleet and approximately $5 billion in hydrogen-enabled natural gas technologies.
Price Movement
In the past month, shares of CMS Energy have decreased 4.8% compared with the industry’s decline of 7.4%.
Image Source: Zacks Investment Research
Zacks Rank
CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.