NextEra Energy Inc. (NEE) announced its intention to purchase 59 wind turbines from General Electric (GE). General Electric recently launched a line of advanced wind turbine technology that is expected to ensure efficient and reliable power service. The 1.7-100 MW brilliant turbines at a height of 80 meters have 100-meter blades that utilize streaming data to supply consistent power.
NextEra Energy ordered the turbines for its Michigan wind farm to supplement its current wind capacity portfolio of 10,000 megawatt ("MW"). The latest line of wind turbine from General Electric supersedes the previous 1.6-100 MW, enhancing output by 6%. With this new technology, NextEra Energy will add 100 MW to its entire capacity generation.
The wind turbines will be placed at the Tuscola II project in the Tuscola County. The construction phase is anticipated to conclude by the end of 2013. The company entered into a 20-year agreement to sell the power produced from this facility to DTE Energy Inc. (DTE). NextEra Energy’s 120 MW Tuscola I project has already started offering services from Dec 2012.
In the U.S., wind generation is estimated to increase by 19% in 2013 on the back of a 3.3% rise in consumption, as per the Energy Information Administration ("EIA"). The inclusion of the 1.7 MW technology will boost energy generation at NextEra. The company in the first quarter signed long-term wind power purchase commitments of 225 MW.
Further, the revival of the production tax credits from Jan 1, 2013 will also benefit renewable majors like NextEra Energy.
However, continual weak merchant prices could constrain growth opportunities for the company. Presently, NextEra Energy carries a Zacks Rank #3 (Hold).
Another utility operator aggressively participating in renewable endeavors is ALLETE Inc. (ALE) The stock is presently well positioned with a Zacks Rank #2 (Buy).
Based in Juno Beach, Fla., NextEra Energy Inc., through its subsidiaries, engages in the generation, transmission, distribution and sale of electric energy in Florida.
More From Zacks.com