Time New York: Sun 18 Feb 16:41 pm  |  Save 15% on H&R Block Online


Public Service Enterprise Buys 6.6-MW Solar Energy Facility


PSEG Solar Source, a unit of Public Service Enterprise Group Inc. PEG, or PSEG, has purchased a 6.6 megawatt-dc (“MW dc”) solar facility from BayWa r.e. Solar Projects for $12.2 million.

About the Facility

Located in Northampton County, NC, about 90 miles northeast of Raleigh, the PSEG Hemlock Solar Energy Center is currently under construction and scheduled to start commercial operations by 2016 end. It is situated on an area of 48 acres under a 35-year lease with a private landowner. The facility has a 15-year power purchase agreement with Virginia Electric and Power Co. a subsidiary of Dominion Resources D.

The engineering, procurement and construction contractor of the facility is BayWa r.e. Once complete, it will operate the project for PSEG Solar Source. It will be powered by around 20,500 poly-crystalline Trina Solar Ltd. TSL panels with SMA inverters.

About PSEG Solar Source

PSEG Solar Source is a subsidiary of PSEG Power, a merchant power generation company which forms part of the PSEG family of companies. Currently, it has 20 utility-scale projects across 13 states. The company has 215 MW-dc in operation and 135 MW-dc under construction and scheduled begin operations by 2016 end.

PSEG Solar Source has two other solar facilities in North Carolina − the PSEG Turkey Creek Solar Center, which is under construction in Northampton County; and the PSEG Meadows Solar Center in Martin County, which commenced operations this June.



PSEG’s Renewable Endeavors

PSEG is focused on expanding its renewable assets. The company invests huge amounts in clean energy projects. Notably, PSEG Solar Source has plans to build solar projects in Colorado, North Carolina and Utah, thereby boosting its portfolio to reach 315 MW of clean, renewable energy, through 17 facilities in 12 states. The company plans to invest $215 million in solar and energy efficiency programs between 2016 and 2018.

Scope of Renewable Energy

Regulations pertaining to pollution control are becoming increasingly stringent, making it crucial for utilities to spend more on emission control infrastructure. Meanwhile, because of their clean-burning nature, investment in the renewable energy space could prove to be profitable over the long run. In particular, solar energy, which presently contributes to only 1% of the total electricity generation in the U.S., represents ample scope of improvement in the days to come.

Zacks Rank & a Key Pick

PSEG currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Hawaiian Electric Industries Inc. HE carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hawaiian Electric witnessed a 1.7% rise in its stock price in the last five days. On an average, the company recorded a positive earnings surprise of 2.38% in the four trailing quarters.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks 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

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.