NRG Acquires Solar Project in Guam - Analyst Blog
16 Julho 2013 - 1:00PM
Zacks
NRG Energy Inc.’s
(NRG) subsidiary NRG Solar has acquired a solar project from
Quantum Utility Generation, LLC’s affiliate Quantum Guam Power
Holdings, LLC. The project has a power generation capacity of
25.65-megawatts (MW).
NRG Energy will sell the output to the Guam Power Authority (GPA),
the sole electricity utility of the island of Guam, through two
25-year power purchase agreements (PPA). These agreements will help
GPA to provide clean and emission-free power to the consumers at a
cheaper price.
Both the parties will be benefited from the current project. The
GPA is currently relying on fuel oil and diesel to generate power.
The project will help the power authority to save more than $300
million as fuel cost with net savings of approximately $100
million. In addition, NRG Energy will be benefited in terms of
reducing its dependence on fossil-fuel for power generation.
It is evident from NRG Energy’s recent activities that it is
concentrating on expanding its solar portfolio via organic as well
as inorganic route.
Recently, NRG Energy announced its plan to set up rooftop solar
photovoltaic arrays at MGM Resorts International’s
(MGM) Mandalay Bay Resort Convention Center in Las Vegas. The
company will sell the output to MGM Resorts through a long-term
power purchase agreement.
As far as inorganic growth strategy is concerned, NRG Energy
recently announced that its two solar photovoltaic facilities -
Kansas South and TA-High Desert projects - have started commercial
operation. The company acquired these two projects having power
generation capacity of 20 MW each from Recurrent Energy. NRG Energy
will sell the output to Edison International’s
(EIX) unit Southern California Edison and PG&E
Corporation’s (PCG) unit Pacific Gas and Electric
Company.
In addition, NRG Energy completed the acquisition of GenOn in Dec
2012. The company has already benefited from it in first-quarter
2013 through an increased realized gross margin in its East segment
and expects to realize $150 million of cost and operational
synergies in 2013.
We believe the timely implementation of renewable energy ventures
along with acquiring new assets and developing and improving
existing portfolio would benefit NRG Energy’s future
performance.
Princeton, N.J.-based NRG Energy together with its subsidiaries
operates as an integrated wholesale power generation and retail
electricity company. The company currently has a Zacks Rank #2
(Buy).
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