Dominion Energy D announced that it has acquired Madison Solar from Cypress Creek Renewables. Madison Solar is a 62.5-megawatt (MW) generating facility in Orange County, VA and is expected to come start commercial operation from the second quarter of 2022.
Northrop Grumman Corporation NOC will purchase the entire electricity generated at Madison Solar and the renewable energy credits, under long-term agreements. This project will contribute to Dominion’s revenues when it starts operation in 2022.
Clean Energy Goals
Dominion has been steadily increasing clean energy generation assets. The company is in the process of adding 3,000 MW of solar or wind generation assets in the state of Virginia by 2022, of which presently 57% is complete. In the next 15 years, Dominion plans to add about 16 gigawatt (GW) of solar generating capacity through company-owned projects and power purchase agreements signed with third-party developers in Virginia.
The company’s long-term objective is to add 21.3 GW of solar and wind (offshore and onshore) as well as 2.7 GW of storage projects by 2036 and 2035, respectively. Dominion aims at cutting down carbon emissions from power generation facilities by 55% in 2030 and further by 100% in 2050 from 2005 levels. The above acquisition is in sync with the company’s long-term goal of cutting down emissions from the production portfolio over the long term.
Transition in Utility Space
We could notice gradual transitions in the utility space, with more companies focusing to generate energy from clean sources and lower carbon footprints over the long term.
A few utilities in the United States have already started working on becoming net-zero emission companies over next few decades. Despite an expected increase in electricity load over the next few decades, the utilities have taken the decision to offer electricity to consumers even when commercial, industrial and other economic activities run at the full pace
Such utilities like Xcel Energy XEL and Duke Energy Corporation DUK, among others, have already chalked out plans to attain net-zero emissions within 2050 from 2005 levels.
Price Performance
In the past year, shares of the company have outperformed the industry.
Zacks Rank
Currently, Dominion has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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