Exelon Unit Installs Solar Assets - Analyst Blog
April 18 2013 - 2:45PM
Zacks
Exelon
Corporation’s (EXC) business wing – Constellation Energy
Resources, LLC – has constructed a 1.6-megawatt solar
generation project in the Somerton School District, Yuma County,
Ariz. The company owns and preserves the solar power systems of the
project.
The plant is situated in five locations – Desert Sonora Elementary
School, Orange Grove Elementary School, Somerton Middle School,
Tierra del Sol Elementary School and Valle del Encanto Learning
Center. The solar system consists of roughly 6,600 photovoltaic
panels on 10 carports and 8 shade structures. It will generate
nearly 2.3 million kilowatt-hours of power annually. At the same
time, it will reduce carbon dioxide emission by 1,300 tons per
year.
Constellation Energy will sell the output to the Somerton School
District over the next 20 years. The long-term power purchase
agreement will help the Somerton School District to get
approximately 60% of its electricity requirements.
We believe Exelon Corporation’s efforts toward expansion of its
solar portfolio will create a win-win situation for both the
parties. Per the solar service agreements, the company offers solar
installations without upfront capital investments from customers
and tries to offer electricity at fixed prices lower than the
prices offered by other utilities in the region.
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.
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 enable
it to avoid incidents like Japanese nuclear plant massacres. At
present, nearly 10% of Exelon Corporation’s total production comes
from renewable sources, with the ratio rising gradually.
Constellation Energy itself has installed approximately
28-megawatts of solar projects at the Arizona school districts.
Exelon Corporation intends to invest $800 million between 2013 and
2014 in order to expand its renewable assets.
Apart from Exelon Corporation, other utility providers including
Wisconsin Energy Corporation (WEC), Sempra
Energy (SRE) and Northeast Utilities (NU)
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. The company currently has a Zacks Rank #3
(Hold).
EXELON CORP (EXC): Free Stock Analysis Report
NORTHEAST UTIL (NU): Free Stock Analysis Report
SEMPRA ENERGY (SRE): Free Stock Analysis Report
WISC ENERGY CP (WEC): Free Stock Analysis Report
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