Constellation Energy Resources – an Exelon Corporation (EXC - Free Report) business wing – has constructed a 5.7 MW solar power project in Lake Country, OR. The Exelon unit has already secured a long-term power purchase agreement for the electricity generated from this solar system.
Constellation Energy will sell the entire output from the plant to Portland General Electric (PGE) for the next 25 years. The long-term power purchase agreement will help Portland General Electric to diversify its generation resources and fulfill the renewable energy standards of the State of Oregon.
The solar system consisting of 20,000 ground-mounted photovoltaic panels will generate 10 million kilowatt hours of power annually. At the same time it will reduce green house gas emission by 2,250 metric tons per year.
Exelon generates most of its electricity from nuclear power plants with more than 60% of its total generation coming from nuclear powered units. Even though the company adheres to all necessary safety measures, nuclear power generation has been a debatable issue worldwide since the nuclear debacle in Japan.
In this context it is encouraging to note that the company is also venturing into environmentally friendly power projects to enhance its capacity. At present, nearly 10% of Exelon’s total production come from renewable sources with the proportion rising gradually.
If we take a look at the fuel mix for power generation, there are quite a few big names mostly operating coal-fired units. American Electric Power Co. (AEP - Free Report) and PPL Corp. (PPL - Free Report) generate more than 50% of their electricity from coal-fired plants. On the other hand we also have producers like Avista Corporation (AVA - Free Report) generating more than 50% of their power from renewable sources.
With as many as 30 U.S. states and the State of Columbia having enforceable renewable portfolio standards or other renewable generation policies, we believe generation from renewable sources will continue to increase in the coming years.
Chicago, Illinois-based Exelon Corporation engages in generation, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers. With a market capitalization of $16.87 billion, the company has 19,267 full time employees. Exelon currently retains a Zacks Rank #3 (Hold).