PNM Resources, Inc. (PNM - Free Report) recently announced an innovative program — PNM Solar Direct — that will enable New Mexico customers to subscribe to energy produced by the large-scale solar facility.
PNM Resources has also requested for the construction of a 50-megawatt (MW) solar facility by Feb 1, 2019. Notably, the company has planned 874 MW of solar, wind and geothermal resources to serve customers in 2021. Also, the City of Albuquerque, NM is subscribing for 25 MW from the new solar facility.
PNM Resources’ New Mexico segment generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind as well as geothermal energy sources. The company is focused on the reduction of coal usage and increase dependence on renewable sources. Moreover, New Mexico wind and solar projects have the potential to support the company’s renewable energy expansion plans.
PNM Resources’ 2020-2021 investment plans include an amount of $250 million for transmission and renewable energy expansion in New Mexico. The company expects that the implementation of integrated resource plan will reduce green house gas by 71% in 2025 and 80% in 2035 from 2005 levels.
Importance of Renewable
Renewable energy sources are witnessing higher demand as the utility sector is currently undergoing a transition. Utility companies are gradually changing source of electricity production by replacing the primary fuel source — coal — with cheap natural gas and renewable sources like solar and wind.
Environmental awareness led the companies to shut coal plants and replace them with more modernized new generation units. Per Energy Information Administration (EIA), wind, solar and other nonhydropower renewables contributed less than 10% to total electricity generation in 2017. EIA expects these sources to contribute more than 10% in 2018 and nearly 11% in 2019.
Other utility companies that are changing their focus toward cleaner energy generation sources are Duke Energy Corp. (DUK - Free Report) , NextEra Energy, Inc (NEE - Free Report) and Alliant Energy Corp. (LNT - Free Report) .
Zacks Rank & Price Movement
PNM Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, shares of PNM Resources have outperformed the industry. The stock has gained 5.6% compared with the industry’s increase of 5.2%.
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