CMS Energy Corp
.’s
CMS
principal subsidiary, Consumer Energy, recently signed a 25-year power purchase agreement (PPA) for renewable energy with Michigan’s Calhoun Solar Center. Per the terms of the transaction, Consumers Energy will buy 140 megawatts (MW) of clean energy from the solar facility, which is expected to be completed in 2022 with projected generation capacity of 200MW.
This agreement reflects a step forward by Consumers Energy toward its Clean Energy Plan, which includes the addition of approximately 1,100 MW of solar through 2024.
Consumers’ Solar Adoption
In line with the global transition toward a greener environment, Consumers Energy plans to reduce carbon emissions by more than 90% by 2040 and eliminate the use of coal to generate electricity during this time frame over the long run. With solar energy being one of its strengths in renewables, we expect to see a notable expansion in Consumer Energy’s solar portfolio. The clean energy purchase from Calhoun Solar Center is a bright example of that.
In January 2021, Consumers entered into an agreement to purchase a solar generating facility under development in Michigan, with capacity of up to 150 MW. Consumers expects to take full ownership and begin commercial operation of the project in 2022.
No doubt, these initiatives will strengthen Consumer Energy and thereby CMS Energy’s position in the global solar market.
Solar Energy Prospects & Utilities
Overcoming the challenges offered by the COVID-19 impacts, the solar market in the United States is once more back on track. Evidently, per the latest Solar Market Insight Report released by the Solar Energy Industries Association (SEIA), solar accounted for 43% of all new electric generating capacity additions through the third quarter of 2020, more than any other electricity source.
Looking ahead, solar installations from 2021 – 2025 are now projected to exceed 107 gigawatts-direct current (GWdc), which indicates a 10 GWdc increase from last quarter, driven primarily by increases in the utility-scale solar pipeline.
Surely such improved projection offers ample growth opportunities for utilities that are expanding their renewable portfolio, with solar constituting a major portion. In this regard, utilities that are worth mentioning include
Dominion Energy
D
,
Duke Energy
DUK
, and
DTE Energy
DTE
. Dominion has helped bring 2,200 MW of solar into operation in 10 states since 2013. The company currently plans for a significant expansion of large-scale solar energy in Virginia, wherein at least 15,900 MW of new solar energy could be added in the next 15 years.
Duke Energy has been aggressively investing in solar energy to reduce its carbon footprint. Notably, Duke Energy Florida is investing to bring 700 MW of solar online by 2022 and has filed a $1 billion shared solar program called Clean Energy Connection, which will add another 750 MW of solar by the end of 2024.
DTE Energy has spent $170 million in developing solar parks since 2008. The 31 solar arrays in its portfolio generate enough clean energy to power more than 14,000 homes. Its latest plan includes bringing online an additional 420 MW of solar energy by 2022, or enough clean energy to power 120,000 homes.
Zacks Rank & Price Performance
CMS Energy currently has a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
In the past year, shares of the company have lost 3.6% against the
industry
’s gain of 10.1%.
.jpg)
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
- Smartest stock for 5G telecom
- Safest investment in 5G hardware
- Single best 5G buy of all!
Download now. Today the report is FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report