CMS Energy Corporation (CMS - Free Report) announced that its subsidiary Consumers Energy Company has received approval from state regulators to go ahead with the Clean Energy Plan. The primary objective of this plan is to lower carbon emissions from electricity generation by focusing more on renewable and other clean sources.
By 2023, the company is determined to retire two of its coal-fired plants, more than a decade ahead of schedule, and add 5,000 megawatts (MW) of solar energy through competitive bidding.
CMS Energy’s Renewable Focus
CMS Energy has been extremely focused on lowering carbon emissions from the electricity generation process. The company lowered carbon emissions by more than 35% from 2005 till Dec 31, 2018. In addition, it lowered the usage of coal by 16% since 2015.
The approval from the Michigan Public Service Commission is in sync with its aim of reducing pollution. This permission will enable Consumers Energy to lower carbon emissions by more than 90% and meet customers' future electricity needs via 90% clean energy resources within 2040.
Utilities’ Focus on Renewables
Despite President Trump’s decision to walk away from the Paris Agreement and the new U.S. administration’s efforts to promote increasing usage of coal, coal generation is dropping in the United States. The decreasing domestic demand for coal from utility operators and declining coal export volumes are the primary reasons behind the same.
Per a recent release from The U.S. Energy Information Administration (“EIA”), production of electricity from renewable sources in the United States surpassed electricity generation from coal sources in April and May 2019.
As more utilities are coming forward with plans to lower emissions by increasing the usage of renewables and cutting down on coal consumption, we expect that renewable sources will continue to strengthen its position in the energy generation mix in the United States.
NextEra Energy (NEE - Free Report) , Xcel Energy (XEL - Free Report) and Dominion Energy (D - Free Report) , among others, have made elaborate plans to add more renewable energy in their generation portfolio and lower emission levels.
In the past 12 months, shares of CMS Energy have surged 35.6% compared with the industry’s 21.5% rally.
CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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