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Eaton (ETN) Completes First Clean Energy Project in Puerto Rico

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Eaton Corp. plc (ETN - Free Report) completes a renewable energy project at its Arecibo, Puerto Rico, manufacturing site to meet the demand for the energy of this site through clean energy sources.

The clean energy microgrid system built by Eaton and Enel North America is the largest in Puerto Rico, significantly lowering the facility's carbon footprint, increasing energy resilience and strengthening community infrastructure. Eaton also reduced its energy requirement by implementing intelligent power management technologies.

Details of the Project

This project will generate more than half of the facility's energy requirements, lowering emissions, offsetting energy costs and ensuring resilience during grid outages. This microgrid system includes 5 megawatts (MW) of solar PV and about 1.1 MW of battery storage, plus existing on-site generators.

This first-of-its-kind sustainable energy project in Puerto Rico signifies Eaton's approach to energy transition, which enables flexible energy systems and supports more resilient, efficient and cheap power generation.

Eaton microgrid is built to withstand Category 5 hurricane-force winds and adds value to typical grid-connected operations by producing renewable energy that can be consumed, stored and returned to the local grid, reducing stress on the island's utility infrastructure.

Eaton’s Long-Term Vision on Emission Reduction

Eaton's environmental efforts at its Arecibo site are in sync with the company's aim to reduce carbon emissions across its operation by 50% by 2030. Eaton is implementing energy efficiency measures and maximizing renewable generation in Puerto Rico and around the world to accelerate the transition to a low-carbon future.

Eaton and Enel North America are constructing a second microgrid at Eaton's Las Piedras manufacturing facility to increase Puerto Rico's energy resiliency.

Emission Reduction Initiatives

Emission is a big concern, and all industries are doing their bit to lower emissions. Utilities are taking initiatives to lower emissions from the electricity generation process. Per the International Energy Agency, the global renewable capacity is expected to increase to 2.5 times from the current level by 2030. This increasing usage of renewable sources is primarily due to increasing investments by utilities to add more renewable assets to their generation portfolio.

Utilities like CenterPoint Energy (CNP - Free Report) , NextEra Energy Inc. (NEE - Free Report) and Dominion Energy Inc. (D - Free Report) , among others, are adopting measures to promote clean energy and grid modernization.

CenterPoint Energy is currently focused on upgrading its infrastructure and has a goal to reach net-zero direct emissions for Scope 1 and Scope 2 emissions by 2035 and reduce Scope 3 emissions by 20% to 30%. The company plans to invest $44.5 billion in the 2021-2030 time frame, which includes more than $3 billion in investments in clean energy.

CNP’s long-term (three to five years) earnings growth rate is 7.51%. The Zacks Consensus Estimate for the company’s 2024 sales indicates an increase of 7.32% over the 2023 reported figure.

NextEra Energy Resources is continuing to develop its long-term investment strategy in clean energy assets. The company aims to add 33-42 gigawatts (GW) of new renewables to its generation portfolio through clean energy investments between 2023 and 2026. NEE will invest $9.8 billion in a variety of renewable projects to broaden its portfolio. The company expects to invest $18.3 billion in this segment in the 2024-2028 period.

NEE’s long-term earnings growth rate is 8.18%. The Zacks Consensus Estimate for its 2024 sales indicates an increase of 1.21% over the 2023 reported figure.

Dominion Energy's long-term goal is to add 24 GW of battery storage, solar, hydro and wind (offshore and onshore) projects by 2036, increasing renewable energy capacity by more than 15% every year, on average, for the following 15 years. Organic projects and purchased assets will help enhance Dominion Energy's renewable energy portfolio.

The company expects to invest $11.8 billion in its various segments by 2024. Dominion Energy plans to achieve net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050. The corporation plans to reduce emissions by 70-80% by 2035 compared to 2005.

D’s long-term earnings growth rate is 8.9%. The Zacks Consensus Estimate for its 2024 sales indicates an improvement of 2.23% over the 2023 reported figure.

Price Performance

In the past six months, shares of ETN have risen 53.3% compared with the industry’s average growth of 23.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

ETN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


 

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