Exelon Corporation’s (EXC - Free Report) business unit – Constellation Energy Resources, LLC – has constructed a 2.6-megawatt (MW) solar generation project in N.Y. The company will invest, develop, own and preserve the solar power systems of the project. This project is expected to be completed by 2013.
The solar system consists of roughly 9,000 ground-mounted, photovoltaic panels located on approximately 9 acres. It will generate nearly 3.3 million kilowatt-hours of power annually. At the same time, this system will reduce carbon dioxide emission by nearly 2,339 metric tons per year.
Constellation Energy will sell the output to Owens Corning (OC - Free Report) over the next 20 years. The long-term power purchase agreement will help Owens Corning to fulfill approximately 6% of electricity requirements of its thermal and acoustical insulation plant in Delmar, N.Y.
This project is partly supported by the New York State Energy Research and Development Authority and will come under the New York Sun initiative, a public-private partnership. The main objective of this initiative is to expand the solar industry and make solar technology affordable for every New York citizens.
We believe Exelon Corporation’s efforts toward expansion of its solar portfolio will create a win-win situation for both the parties. This project will support Owens Corning's 2020 Environmental Footprint Goals for energy utilization and minimization of greenhouse gas emissions.
Globally, utilization of renewable energy is rising primarily due to its clean nature and a growing awareness among the masses regarding its benefits. These influence utility providers to shift their mode of power generation to solar, wind and water.
Constellation Energy currently owns and operates approximately 145 MW of solar installations that have been completed or are under way throughout the United States. In Apr 2013, the company constructed a 1.6 MW solar generation project in the Somerton School District, Yuma County, Ariz.
Exelon Corporation generates 55% of its electricity from the nuclear power plants. The company is currently venturing into environment-friendly power projects, which will subsequently allow it to avoid incidents like Japanese nuclear plant accident. Currently, nearly 10% of Exelon Corporation’s total production comes from renewable sources, with the ratio rising gradually.
Apart from Exelon Corporation, other utility providers including Wisconsin Energy Corporation (WEC - Free Report) and Sempra Energy (SRE - Free Report) also invest substantial amounts to expand and upgrade their renewable portfolio.
Chicago, Ill.-based Exelon Corporation, a utility services holding company, engages in the generation, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers. Exelon Corporation currently has a Zacks Rank #3 (Hold).