NRG Energy, Inc. (NRG) announced that it has launched the NRG Community 1 Solar Generating Facility in California. The 6-megawatt (MW) facility is located at the Imperial Valley Campus of San Diego State University.
The NRG Community 1 Solar Generating Facility has been jointly developed by Californian electric power project development firm, Sol Orchard LLC, and the Center for Energy Sustainability. Aerospace and defense giant The Boeing Company’s (BA) unit Boeing Defense, Space & Security has offered engineering, procurement and construction services for this project.
NRG Energy has utilized over 25,000 modules in the project, covering around 37 acres of land. At full capacity, the facility can provide emission-free electricity to roughly 2,200 homes. This program developed a unique opportunity for homes and facilities that are not suitable for installing rooftop systems.
NRG Energy will sell the entire output from the facility to the Imperial Irrigation District under a 25-year power purchase agreement. Subsequently, the Imperial Irrigation District will sell electricity at a competitive rate to the interested customers through a community solar program.
It is evident from past records that NRG Energy continues to follow a solar energy-focused strategy. On Mar 24, 2014, the company announced that its solar asset-base has crossed 1,200-MW mark. In May 2014, the company’s subsidiary NRG Residential Solar Solutions developed a community solar array in Rutland, VT, under its Vermont Community Solar Project. NRG Energy will be selling the output from the 150-kilowatt solar farm to 50 customers of Green Mountain Power Corporation.
We appreciate NRG Energy’s steady effort towards expansion of its renewable portfolio through organic as well as inorganic initiatives. In Mar 2014, the company acquired U.S. solar sales and installation provider, Roof Diagnostics Solar. In addition, NRG Energy acquired considerably all of the assets of Edison Mission Energy, a unit of Edison International (EIX).
NRG Energy’s strong financial position supports its steady expansion initiatives. As of Mar 31, 2014, the company had cash and cash equivalents of $3.19 billion and total available fund of $1.3 billion under the credit facility.
NRG Energy currently has a Zacks Rank #1 (Strong Buy). Another stock in the utility sector looking equally good is Entergy Corporation (ETR), carrying the same rank as NRG Energy.