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Duke Energy's (DUK) 1st Floating Solar Plant in Florida Opens
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Duke Energy Corp. (DUK - Free Report) recently announced the start of operation at its first floating solar project in Florida. This should further strengthen the company’s position in the expanding clean energy market.
Details of the Project
The solar project, with a capacity of around 1 megawatt (MW), has a floating solar array that features more than 1,800 solar panels and can power about 100 homes. The project boasts bifacial solar panels that absorb light from both sides and can produce 10-20% more power than their single-sided counterparts.
The system is located on top of two acres of water surface on an existing cooling pond at the Duke Energy Hines Energy Complex in Bartow.
Before the final anchoring of the project on water, the crews assembled the module floating system on land in segments. It took around six months to completely construct and connect the system to the grid.
DUK’s Transition in Energy Space
The global economy has been witnessing increasing demand for clean energy, with the United States dominating the renewable energy market. This sector benefits from the declining renewables cost and favorable government policies. To this end, the Mordor Intelligence firm expects the global renewable energy market to reach 4.24 terawatts in 2024 and 5.98 terawatts by 2029, at a CAGR of 7.09% during this period.
With the utility sector rapidly adopting renewables as their preferred choice of energy source, let’s explore the growth prospects of Duke Energy in the expanding renewables market.
As part of its clean energy portfolio expansion strategy, Duke Energy has a 2023-2027 capital expenditure plan of $40 billion for zero-carbon generation, such as solar, wind and battery storage resources, and extending the life of its nuclear fleet, and approximately $5 billion in hydrogen-enabled natural gas technologies. It aims to reach its target of net-zero carbon emissions from electric generation by 2050.
Duke Energy’s Vision Florida program is designed to test innovative projects such as green hydrogen, various battery energy storage technologies etc., to prepare the power grid for a cleaner energy future. The recent announcement marks the second floating project, with the first 1.1 MW facility located in North Carolina. The company plans to add 25 grid-tied solar power plants in Florida in 2024, providing about 1,500 MW of clean energy.
Peer Moves
Other utility players that are expanding their renewables portfolio and are thus set to gain from the renewables market’s growth are Consolidated Edison Inc. (ED - Free Report) , American Electric Power Co. Inc. (AEP - Free Report) and CMS Energy Corp. (CMS - Free Report) .
During third-quarter 2023, Consolidated Edison installed roughly 26 MW of customer-owned solar capacity, 11 MW of customer-owned battery storage and 550 EV plugs. In March 2023, the company completed the sale of all of the assets of its Clean Energy Businesses to RWE Renewables America, LLC, for $6.8 billion.
ED’s long-term (three-to five-years) earnings growth rate is pegged at 2%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 2.8% from the 2023 projected figure.
American Electric Power currently operates 6,100 MW of renewable energy. For 2023-2027, AEP has a capital expenditure plan of $43 billion, out of which $8.6 billion is focused on regulated renewables. In addition to 1,484 MW North Central Wind Energy facilities, the company plans to add nearly 15,700 MW of new renewables and energy storage over the next 10 years.
AEP’s long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 7.3% from the 2023 projected figure.
CMS Energy has a capital expenditure plan of $3.1 billion, including wind, solar and hydroelectric generation resources for the 2023-2027 period. It is focused on adding nearly 8,000 MW of solar generation by 2040 and purchasing an existing natural gas-fueled generating unit. On Jan 2, 2024, it started the operation of Heartland Farms Wind in Gratiot County and now operates a total of five wind farms in Michigan.
CMS’ long-term earnings growth rate is 7.5%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 6.3% from the 2023 projected figure.
Price Performance
In the past six months, shares of DUK have gained 7.8% against the industry’s 7.8% decline.
Image: Bigstock
Duke Energy's (DUK) 1st Floating Solar Plant in Florida Opens
Duke Energy Corp. (DUK - Free Report) recently announced the start of operation at its first floating solar project in Florida. This should further strengthen the company’s position in the expanding clean energy market.
Details of the Project
The solar project, with a capacity of around 1 megawatt (MW), has a floating solar array that features more than 1,800 solar panels and can power about 100 homes. The project boasts bifacial solar panels that absorb light from both sides and can produce 10-20% more power than their single-sided counterparts.
The system is located on top of two acres of water surface on an existing cooling pond at the Duke Energy Hines Energy Complex in Bartow.
Before the final anchoring of the project on water, the crews assembled the module floating system on land in segments. It took around six months to completely construct and connect the system to the grid.
DUK’s Transition in Energy Space
The global economy has been witnessing increasing demand for clean energy, with the United States dominating the renewable energy market. This sector benefits from the declining renewables cost and favorable government policies. To this end, the Mordor Intelligence firm expects the global renewable energy market to reach 4.24 terawatts in 2024 and 5.98 terawatts by 2029, at a CAGR of 7.09% during this period.
With the utility sector rapidly adopting renewables as their preferred choice of energy source, let’s explore the growth prospects of Duke Energy in the expanding renewables market.
As part of its clean energy portfolio expansion strategy, Duke Energy has a 2023-2027 capital expenditure plan of $40 billion for zero-carbon generation, such as solar, wind and battery storage resources, and extending the life of its nuclear fleet, and approximately $5 billion in hydrogen-enabled natural gas technologies. It aims to reach its target of net-zero carbon emissions from electric generation by 2050.
Duke Energy’s Vision Florida program is designed to test innovative projects such as green hydrogen, various battery energy storage technologies etc., to prepare the power grid for a cleaner energy future. The recent announcement marks the second floating project, with the first 1.1 MW facility located in North Carolina. The company plans to add 25 grid-tied solar power plants in Florida in 2024, providing about 1,500 MW of clean energy.
Peer Moves
Other utility players that are expanding their renewables portfolio and are thus set to gain from the renewables market’s growth are Consolidated Edison Inc. (ED - Free Report) , American Electric Power Co. Inc. (AEP - Free Report) and CMS Energy Corp. (CMS - Free Report) .
During third-quarter 2023, Consolidated Edison installed roughly 26 MW of customer-owned solar capacity, 11 MW of customer-owned battery storage and 550 EV plugs. In March 2023, the company completed the sale of all of the assets of its Clean Energy Businesses to RWE Renewables America, LLC, for $6.8 billion.
ED’s long-term (three-to five-years) earnings growth rate is pegged at 2%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 2.8% from the 2023 projected figure.
American Electric Power currently operates 6,100 MW of renewable energy. For 2023-2027, AEP has a capital expenditure plan of $43 billion, out of which $8.6 billion is focused on regulated renewables. In addition to 1,484 MW North Central Wind Energy facilities, the company plans to add nearly 15,700 MW of new renewables and energy storage over the next 10 years.
AEP’s long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 7.3% from the 2023 projected figure.
CMS Energy has a capital expenditure plan of $3.1 billion, including wind, solar and hydroelectric generation resources for the 2023-2027 period. It is focused on adding nearly 8,000 MW of solar generation by 2040 and purchasing an existing natural gas-fueled generating unit. On Jan 2, 2024, it started the operation of Heartland Farms Wind in Gratiot County and now operates a total of five wind farms in Michigan.
CMS’ long-term earnings growth rate is 7.5%. The Zacks Consensus Estimate for 2024 sales indicates a rise of 6.3% from the 2023 projected figure.
Price Performance
In the past six months, shares of DUK have gained 7.8% against the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
Duke Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.