Edison International’s (EIX - Free Report) subsidiary, SoCore Energy, has agreed to buy equity interests in 22 community solar garden development projects in Minnesota. The agreement came as part of SunEdison’s bankruptcy proceedings, which are dependent on certain conditions.
Details of the Agreement
The purchase of equity interests was approved yesterday, after an order from the U.S. Bankruptcy Court in New York. The deal has been valued at $79.8 million, upon the completion of all the projects.
The projects will generate up to 140 megawatts (“MW”) of solar power and cater to growing demand for renewable energy in the state.
SoCore Energy’s Portfolio
SoCore Energy already has solar installations in Minnesota that are aimed to meet the electricity requirements of its commercial customers. Furthermore, the company is developing solar projects in the state to serve commercial customers as well as electric cooperatives.
The newly acquired projects will expand SoCore Energy’s renewable portfolio. The company is expected to begin construction of a number of projects in the fourth quarter of 2016. It aims to finish all development and construction work next year, utilizing third-party tax equity and debt financing.
About SoCore Energy
Established in 2008, SoCore Energy is a privately held company that supplies solar electricity to multisite retailers, real estate investment trusts (REITs), and large commercial and industrial clients.
In Aug 2013, Edison international acquired SoCore Energy. The acquisition allowed Edison International to foray into the market of installing and operating rooftop solar electric systems for business and industrial customers. As of 2015 end, SoCore Energy had constructed and achieved commercial operations for 54 MW of rooftop solar systems across 16 states in the U.S.
California-based Edison International is focused on expanding its renewable portfolio. The company is continuously undertaking initiatives to meet the state’s target of drawing 50% of the state’s electricity from renewable sources, reducing the use of fossil fuel in cars and trucks by 50% and doubling the efficiency of existing buildings by 2030. The company is also executing infrastructure improvement programs for improving system reliability, pursuing strategic acquisitions, implementing smart grid technology and focusing on compliance with the state government’s renewable energy regulations.
Zacks Rank & Key Picks
Edison International presently has a Zacks Rank #2 (Buy). A few other favorably placed stocks in the power sector include Spark Energy, Inc. (SPKE - Free Report) , NiSource Inc. (NI - Free Report) and Southern Company (SO - Free Report) .
Spark Energy’s shares witnessed a 2.6% increase over the last five trading sessions. On an average, the company has delivered a positive earnings surprise of 48.24% in the trailing four quarters. In the last reported quarter, Spark Energy’s bottom line beat outpaced the Zacks Consensus Estimate by 3.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NiSource, a Zacks Rank #2 (Buy) stock, saw a 2.2% rise in its share price over the last five trading session. On an average, the company has delivered a positive earnings surprise of 54.83% over the trailing four quarters. In the last reported quarter, the company posted a positive earnings surprise of 14.29%.
Southern Company also carries a Zacks Rank #2. The stock has gained 1.8% in its last five trading sessions. On an average, the company has delivered a positive earnings surprise of 5.58% over the trailing four quarters. In the last reported quarter, the company posted a positive earnings surprise of 7.25%.
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