TotalEnergies (TTE) & ENEOS to Build 2GW Solar JV in Asia
TotalEnergies TTE and ENEOS entered into a joint venture to build onsite B2B solar distributed generation across Asia. Through the joint venture, these companies aim to develop 2 gigawatts (GW) of decentralized solar capacity over the next five years.
The joint venture will utilize TotalEnergies’ global footprint and expertise in this market segment and ENEOS’ expertise in renewables and strong brand presence to reduce the cost of developing onsite solar solutions for industrial and commercial customers. The ultimate aim is to lower emissions and reduce dependency on the grid.
Asia Pacific Presents Big Opportunities
Per a report from Wood Mackenzie, the Asia Pacific region offers big opportunities for solar investment. Per the report, the total installed capacity is expected to triple to 1,500 GW in 2030 from 430 GW in 2020.
As the demand for solar energy is expected to increase substantially in this region in the next 10 years, the joint venture will definitely gain from the rising demand. Given the expected increase in demand, these companies might upwardly revise their clean power generation goal for the next five years.
TotalEnergies’ Clean Energy Vision
TotalEnergies targets to achieve zero emissions by 2050 and is taking the necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. This new joint venture is in sync with TotalEnergies’ long-term goal to produce a substantial volume of electricity from renewable sources.
TotalEnergies has plans to continue expanding the clean energy generation business to reach 35 GW and 100 GW of gross production capacity from renewable sources by 2025 and 2030, respectively. TotalEnergies is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. In the near term, TotalEnergies plans to have more than 16 GW of renewable gross capacity in operation by year-end 2022.
Price Performance
In the past year, TotalEnergies’ shares have gained 12.2% compared with the industry’s rally of 17.8%.
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Zacks Rank & Other Key Picks
TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same space include Equinor Inc. EQNR and Evergy EVRG. While Equinor sports a Zacks Rank #1, Evergy holds a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor’s long-term (three to five) earnings growth is currently pegged at 49.4%. EQNR delivered an average earnings surprise of 22.1% in the last four quarters. The Zacks Consensus Estimate for EQNR’s 2022 earnings has moved up 39.2% to $4.83 in the past 60 days.
Evergy’s long-term earnings growth is currently pegged at 6.1%. EVRG delivered an average earnings surprise of 87.4% in the last four reported quarters. The Zacks Consensus Estimate for EVRG’s 2022 earnings has moved up 0.6% to $3.53 in the past 60 days.
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