Ameren's (AEE) Arm Gets Nod to Acquire 150 MW Solar Facility
Ameren Corporation’s AEE arm, Ameren Missouri, recently received a regulatory nod from the Missouri Public Service Commission to acquire a solar facility in White County, IL. This solar facility, which boasts a capacity of 150 megawatts (MW), will boost Ameren’s positioning in the renewable energy market.
The project, with the capability to power nearly 27,500 homes for a year, is expected to reach commercial operation by the end of 2024. The solar facility will be backing the Renewable Solutions Program to contribute toward the expansion of renewable energy in Illinois and meet the growing demand of customers.
Ameren’s Gradual Expansion in Renewable Energy Space
Ameren aims to achieve the net-zero carbon emission goal by 2045 across all its operations in Missouri and Illinois. In addition, the company is making progress in its largest-ever expansion of clean wind and solar generation, which maintains reliability and affordability for customers.
To achieve carbon neutrality, Ameren aims to add 2,800 MW to new, clean renewable generation by 2030. With the recent acquisition, the company has been successful in adding 10 solar facilities to its renewable energy generation portfolio. Prior to this announcement, Ameren acquired the 200 MW Huck Finn Solar project, which was claimed to be its largest solar facility.
Ameren’s continuous investment in the renewable energy space will fortify its generation capacity in the renewable energy arena. This will help the company meet the growing demand for next-generation energy efficiently.
Growth Prospects
The latest annual energy outlook by the U.S. Energy Information Administration suggests renewable energy capacity to grow in all the regions of the United States in the days ahead. Meanwhile, solar and wind resources of energy are likely to dominate the energy mix.
Thus, utilities may be seen to consolidate their positioning in the renewable energy space to provide more reliable and sustainable energy to their customers. In this context, apart from AEE, utilities that have significantly expanded and are increasingly exploring opportunities in the renewable energy space are as follows:
In April 2023, Duke Energy DUK announced the completion of two solar projects in the Alachua and Suwannee counties. The sites at peak production will deliver 150 MW of clean, renewable energy to the grid to benefit Florida customers.
Duke Energy has a long-term earnings growth rate of 5.4%. DUK shares have risen 11.3% in the past six months.
In March 2023, Entergy Corporation’s ETR arm, Entergy Louisiana, filed a request with the Louisiana Public Service Commission seeking consent for the construction of two solar projects with a combined production capacity of 225 MW. The company aims to expand its renewable energy portfolio with the projects.
Entergy’s long-term earnings growth rate is pegged at 6%. Shares of ETR have appreciated 7.7% in the past six months.
In December 2022, American Electric AEP proposed for off-take from new and existing solar and wind facilities located in the PJM service region and new solar facilities located in ERCOT. The main aim is to support the company's growing retail and wholesale loads in Texas and Ohio.
American Electric has a long-term earnings growth rate of 6.1%. AEP shares have risen 10.5% in the past six months.
Price Movement
In the past six months, Ameren shares have increased 15.9% compared with the industry’s growth of 11.3%.
Image Source: Zacks Investment Research
Zacks Rank
Ameren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Ameren Corporation (AEE) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
