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Sempra Energy's (SRE) Arm Unveils 320 MW Wind Project in Mexico
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Sempra Energy’s (SRE - Free Report) subsidiary, Sempra Infrastructure, recently revealed its final investment decision for the development, construction and operation of the Cimarron wind project. This should bolster SRE’s footprint in the expanding renewable energy market.
Details of the Project
The Cimarron project, the third phase of the Energía Sierra Juarez (“ESJ”) wind complex, comes with a wind generation capacity of approximately 320 megawatts (MW). The farm’s primary purpose is to provide renewable energy to the City of Santa Clara, CA, over the long term.
Cimarron will produce energy equivalent to the annual energy consumption of more than 84,000 homes and is expected to reduce greenhouse gas emissions by around 210,000 metric tons of carbon dioxide equivalent per year. The project is expected to commence generating energy in late 2025.
Sempra’s Take on Renewable Energy
To enhance its clean energy portfolio, Sempra Energy is focused on commercializing and deploying low-carbon solution projects like the Cimarron wind project. Sempra Infrastructure is also currently evaluating the Hackberry Carbon Sequestration development opportunity, which is a carbon capture and sequestration project that is intended to reduce emissions at the Cameron LNG Phase 1 facility and the proposed Cameron LNG Phase 2 project.
As of Dec 31, 2023, Sempra Infrastructure had a fully contracted, total nameplate capacity of 1,044 MW related to its fully operating wind and solar power generation facilities. Once the Cimarron project becomes fully operational, the ESJ wind complex will represent one of the largest commercial wind projects in Mexico, thereby further boosting SRE’s renewable generation capacity.
Prospects of the Renewable Energy Market
As industries across the board are putting in their efforts to fight climate change and promote decarbonization, the utility industry remains a forerunner in the energy transition process. As predicted by the International Energy Agency, the global renewable capacity is expected to increase to 2.5 times its current level by 2030. To reap the benefits of such growth prospects, utilities like SRE are increasingly investing in their renewable generation portfolio and reducing carbon emissions.
Keeping up with this trend, other utilities like Xcel Energy Inc. (XEL - Free Report) , NextEra Energy Inc. (NEE - Free Report) and Avangrid (AGR - Free Report) are also adopting measures to promote clean energy.
As of Dec 31, 2023, Xcel Energy had wind capacity of more than 11,000 MW, including nearly 4,500 MW of owned wind. Impressively, the company was the first U.S. utility to establish a carbon-free vision, targeting 100% carbon-free electricity by 2050, with an interim goal to reduce carbon emissions 80% by 2030 (from the 2005 levels), including owned and purchased power.
XEL’s long-term (three to five years) earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2024 sales indicates an increase of 7.5% over the 2023 reported figure.
NextEra Energy’s subsidiary, NextEra Energy Resources, is the world's largest generator of renewable energy from wind and sun, as well as a world leader in battery storage. The company expects to be able to add 33-42 GW of new renewables in the 2023-2026 period to the generation portfolio via clean energy investments.
NEE’s long-term earnings growth rate is 8.20%. The Zacks Consensus Estimate for its 2024 sales indicates an increase of 1.2% over the 2023 reported figure.
Avangrid aims to generate 10 GW of emission-free energy capacity by 2025, with a 70% reduction in emission intensity by 2030 compared to 2015. As of Dec 31, 2023, the Avangrid Renewables unit owned and operated 9.3 GW of electricity capacity, primarily through wind and solar power, with a presence in 22 states across the United States.
AGR’s long-term earnings growth rate is 24.4%. The Zacks Consensus Estimate for its 2024 sales indicates an improvement of 3.8% over the 2023 reported figure.
Price Performance
In the past year, shares of SRE have declined 4.3% compared with the industry’s average decrease of 9.9%.
Image: Bigstock
Sempra Energy's (SRE) Arm Unveils 320 MW Wind Project in Mexico
Sempra Energy’s (SRE - Free Report) subsidiary, Sempra Infrastructure, recently revealed its final investment decision for the development, construction and operation of the Cimarron wind project. This should bolster SRE’s footprint in the expanding renewable energy market.
Details of the Project
The Cimarron project, the third phase of the Energía Sierra Juarez (“ESJ”) wind complex, comes with a wind generation capacity of approximately 320 megawatts (MW). The farm’s primary purpose is to provide renewable energy to the City of Santa Clara, CA, over the long term.
Cimarron will produce energy equivalent to the annual energy consumption of more than 84,000 homes and is expected to reduce greenhouse gas emissions by around 210,000 metric tons of carbon dioxide equivalent per year. The project is expected to commence generating energy in late 2025.
Sempra’s Take on Renewable Energy
To enhance its clean energy portfolio, Sempra Energy is focused on commercializing and deploying low-carbon solution projects like the Cimarron wind project. Sempra Infrastructure is also currently evaluating the Hackberry Carbon Sequestration development opportunity, which is a carbon capture and sequestration project that is intended to reduce emissions at the Cameron LNG Phase 1 facility and the proposed Cameron LNG Phase 2 project.
As of Dec 31, 2023, Sempra Infrastructure had a fully contracted, total nameplate capacity of 1,044 MW related to its fully operating wind and solar power generation facilities. Once the Cimarron project becomes fully operational, the ESJ wind complex will represent one of the largest commercial wind projects in Mexico, thereby further boosting SRE’s renewable generation capacity.
Prospects of the Renewable Energy Market
As industries across the board are putting in their efforts to fight climate change and promote decarbonization, the utility industry remains a forerunner in the energy transition process. As predicted by the International Energy Agency, the global renewable capacity is expected to increase to 2.5 times its current level by 2030. To reap the benefits of such growth prospects, utilities like SRE are increasingly investing in their renewable generation portfolio and reducing carbon emissions.
Keeping up with this trend, other utilities like Xcel Energy Inc. (XEL - Free Report) , NextEra Energy Inc. (NEE - Free Report) and Avangrid (AGR - Free Report) are also adopting measures to promote clean energy.
As of Dec 31, 2023, Xcel Energy had wind capacity of more than 11,000 MW, including nearly 4,500 MW of owned wind. Impressively, the company was the first U.S. utility to establish a carbon-free vision, targeting 100% carbon-free electricity by 2050, with an interim goal to reduce carbon emissions 80% by 2030 (from the 2005 levels), including owned and purchased power.
XEL’s long-term (three to five years) earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2024 sales indicates an increase of 7.5% over the 2023 reported figure.
NextEra Energy’s subsidiary, NextEra Energy Resources, is the world's largest generator of renewable energy from wind and sun, as well as a world leader in battery storage. The company expects to be able to add 33-42 GW of new renewables in the 2023-2026 period to the generation portfolio via clean energy investments.
NEE’s long-term earnings growth rate is 8.20%. The Zacks Consensus Estimate for its 2024 sales indicates an increase of 1.2% over the 2023 reported figure.
Avangrid aims to generate 10 GW of emission-free energy capacity by 2025, with a 70% reduction in emission intensity by 2030 compared to 2015. As of Dec 31, 2023, the Avangrid Renewables unit owned and operated 9.3 GW of electricity capacity, primarily through wind and solar power, with a presence in 22 states across the United States.
AGR’s long-term earnings growth rate is 24.4%. The Zacks Consensus Estimate for its 2024 sales indicates an improvement of 3.8% over the 2023 reported figure.
Price Performance
In the past year, shares of SRE have declined 4.3% compared with the industry’s average decrease of 9.9%.
Image Source: Zacks Investment Research
Zacks Rank
SRE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.