NextEra Energy Inc. (NEE) announced that its subsidiary Solar LLC has secured financing worth $935 million for its 250 megawatt (MW) solar project located in Riverside County, California.
The fund of $935 million consists of $702 million in project bonds, a $150 million project term loan facility and an $83 million project letter of credit facility. The U.S. Department of Energy under its Financial Institution Partnership Program has provided a loan guarantee of 80%.
The new project will use the proven parabolic trough solar thermal technology to create energy. Such efforts on part of NextEra Energy are a testament to the company’s commitment to increase its green generation portfolio. The ability of the company to get financing and loan guarantee proves that its moves are well appreciated in the markets.
The company has plans to add 400 MW to 600 MW of solar power in its portfolio within 2010 to 2014. The Riverside County solar project is part of this long-term strategy. The company also plans to spend $2.15 billion between 2011 and 2014 on various solar projects.
Besides solar projects in its renewable portfolio, NextEra Energy is adding wind generation of 1,400 MW to 2,000 MW in 2011 and 2012, at a total cost of approximately $3 billion to $4 billion.
NextEra's efforts in boosting its renewable energy portfolio is geared toward meeting stringent regulatory standards of different US states that mandate sourcing energy for retail sales from naturally replenished sources, such as sunlight, wind, tides and the like, by the year 2025.
NextEra Energy's earnings per share of $1.18 in the second quarter surpassed both the year-ago performance and our expectation. The company reiterated its 2011 earnings guidance in a range of $4.35 to $4.65 per share.
The Zacks Consensus Estimates for third-quarter 2011, fiscal year 2011 and fiscal year 2012 are currently $1.48 per share, $4.50 per share and $4.74 per share, respectively.
NextEra Energy retains a Zacks #3 Rank, which translates into a short-term Hold rating. We maintain our long-term Neutral recommendation on the stock. The company also has to compete with Progress Energy Inc. (PGN) and Southern Company (SO).
Based in Juno Beach, Florida, NextEra Energy Inc. engages in the generation, transmission, distribution and sale of electric energy in Florida.
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