We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
American Water Works' Arm Installs New Battery Energy Storage System
Read MoreHide Full Article
Key Takeaways
American Water Works is installing battery energy storage at its Sierra Lakes Water Treatment plant.
The $800K Hillview project is partly funded by California's Self-Generation Incentive Program.
Battery Storage helps AWK ensure reliable service during outages and Public Safety Power Shutoffs.
American Water Works (AWK - Free Report) announced that its subsidiary, California American Water, is installing battery energy storage systems (“BESS”) in high-risk regions across the state. The goal is to improve reliability and emergency preparation.
California's Self-Generation Incentive Program, a state-run program that promotes investments in renewable energy, is helping fund the $800,000 Hillview project. It will provide close to $350,000 toward the project's overall cost.
How Will AWK Benefit?
The system, which is the company's first in Madera County, is situated at the Sierra Lakes Water Treatment Plant in Hillview and demonstrates California American Water's dedication to making necessary investments in preserving and safeguarding water service during emergencies and Public Safety Power Shutoffs (“PSPS”).
PSPS are typically started by electric utilities in order to prevent wildfires, but they can disrupt water infrastructure that relies on uninterrupted power. In an area where outages frequently occur, the BESS will provide reliable energy by replacing diesel generators.
The battery backup system helps ensure continuity of service during grid outages and PSPS events. More reliable service lowers the likelihood of consumer complaints and service interruptions for a utility. Increased availability can lower operational expenses associated with emergency responses and tends to increase customer satisfaction.
After wildfires and PSPS incidents, California American Water started implementing BESS technology in Ventura County in 2020. As part of its long-term resilience strategy, the company is still evaluating other locations for potential deployments. The company remains committed to developing clean energy solutions throughout the state that strengthen communities and infrastructure.
Growth Prospects for BESS
According to a Precedence Research report, the global BESS market is projected to grow from $10.16 billion in 2025 to $86.87 billion by 2034, at a CAGR of 26.92%. This industry is expanding globally due to the need for grid stability and the growing trend toward renewable energy sources.
Along with AWK, other utility companies like NextEra Energy, Inc. (NEE - Free Report) , Vistra (VST - Free Report) and PG&E Corporation (PCG - Free Report) are also enhancing grid reliability through battery storage systems.
NEE’s subsidiary, NextEra Energy Resources LLC (“NEER”), is a world leader in battery storage capacity. NEER develops and constructs battery storage projects, which, when combined with its renewable projects, help enhance its ability to meet customers' firm capacity needs, or as standalone facilities. As of Dec. 31, 2024, NextEra Energy Resources had net ownership interests in approximately 3,379 megawatts (MW) of battery storage capacity.
NEE’s long-term (three to five years) earnings growth rate is 7.89%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 15.7%.
Vistra’s Moss Landing Energy Storage Facility in California, one of the world’s largest, exemplifies its leadership in deploying utility-scale storage. As of Dec. 31, 2024, VST owned BESS totaling 750 MW in California, 270 MW in Texas and 4 MW in Illinois. It has plans to develop additional BESS at retired or to-be-retired plant sites in Illinois.
VST’s long-term earnings growth rate is 10.16%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 25.3%.
PCG has managed contracts for more than 4.6 gigawatts of battery energy storage to be deployed over the next several years and operates 183 MW of utility-owned battery storage, strengthening California’s grid efficiency and reliability.
PCG’s long-term earnings growth rate is 8.95%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 7.7%.
AWK’s Stock Price Performance
Year to date, shares of the company have risen 11.3% compared with the industry’s 17.6% growth.
Image: Bigstock
American Water Works' Arm Installs New Battery Energy Storage System
Key Takeaways
American Water Works (AWK - Free Report) announced that its subsidiary, California American Water, is installing battery energy storage systems (“BESS”) in high-risk regions across the state. The goal is to improve reliability and emergency preparation.
California's Self-Generation Incentive Program, a state-run program that promotes investments in renewable energy, is helping fund the $800,000 Hillview project. It will provide close to $350,000 toward the project's overall cost.
How Will AWK Benefit?
The system, which is the company's first in Madera County, is situated at the Sierra Lakes Water Treatment Plant in Hillview and demonstrates California American Water's dedication to making necessary investments in preserving and safeguarding water service during emergencies and Public Safety Power Shutoffs (“PSPS”).
PSPS are typically started by electric utilities in order to prevent wildfires, but they can disrupt water infrastructure that relies on uninterrupted power. In an area where outages frequently occur, the BESS will provide reliable energy by replacing diesel generators.
The battery backup system helps ensure continuity of service during grid outages and PSPS events. More reliable service lowers the likelihood of consumer complaints and service interruptions for a utility. Increased availability can lower operational expenses associated with emergency responses and tends to increase customer satisfaction.
After wildfires and PSPS incidents, California American Water started implementing BESS technology in Ventura County in 2020. As part of its long-term resilience strategy, the company is still evaluating other locations for potential deployments. The company remains committed to developing clean energy solutions throughout the state that strengthen communities and infrastructure.
Growth Prospects for BESS
According to a Precedence Research report, the global BESS market is projected to grow from $10.16 billion in 2025 to $86.87 billion by 2034, at a CAGR of 26.92%. This industry is expanding globally due to the need for grid stability and the growing trend toward renewable energy sources.
Along with AWK, other utility companies like NextEra Energy, Inc. (NEE - Free Report) , Vistra (VST - Free Report) and PG&E Corporation (PCG - Free Report) are also enhancing grid reliability through battery storage systems.
NEE’s subsidiary, NextEra Energy Resources LLC (“NEER”), is a world leader in battery storage capacity. NEER develops and constructs battery storage projects, which, when combined with its renewable projects, help enhance its ability to meet customers' firm capacity needs, or as standalone facilities. As of Dec. 31, 2024, NextEra Energy Resources had net ownership interests in approximately 3,379 megawatts (MW) of battery storage capacity.
NEE’s long-term (three to five years) earnings growth rate is 7.89%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 15.7%.
Vistra’s Moss Landing Energy Storage Facility in California, one of the world’s largest, exemplifies its leadership in deploying utility-scale storage. As of Dec. 31, 2024, VST owned BESS totaling 750 MW in California, 270 MW in Texas and 4 MW in Illinois. It has plans to develop additional BESS at retired or to-be-retired plant sites in Illinois.
VST’s long-term earnings growth rate is 10.16%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 25.3%.
PCG has managed contracts for more than 4.6 gigawatts of battery energy storage to be deployed over the next several years and operates 183 MW of utility-owned battery storage, strengthening California’s grid efficiency and reliability.
PCG’s long-term earnings growth rate is 8.95%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 7.7%.
AWK’s Stock Price Performance
Year to date, shares of the company have risen 11.3% compared with the industry’s 17.6% growth.
Image Source: Zacks Investment Research
AWK’s Zacks Rank
The company currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.