Duke Energy Florida, Inc., a subsidiary of Duke Energy Corporation DUK, announced its plan to add utility-scale solar worth up to 500-megawatt (“MW”) to its portfolio by 2024. Duke Energy Florida has already filed for its solar assets expansion proposal with the Florida Public Service Commission. The latest plan comes under its 2015 Ten-Year Site Plan.
Duke Energy Florida will commence the development of up to 5-MW facilities at the first site later this year and plans to complete 35 MW by 2018. These initial ventures will allow the company to assess costs and examine its impact on electricity grids.
Installation of solar facilities coupled with the construction of a combined-cycle natural gas plant in Citrus County, improvement of the combined-cycle Hines plant in Polk County and acquisition of the Osprey plant from Calpine Corporation CPN will enable Duke Energy Florida to increase its power generation capacity and retire 50% of its coal-fired assets by 2018.
Duke Energy Florida’s efforts on curbing carbon emission during power generation through the expansion of its renewable portfolio, besides investments in infrastructure development are commendable.
In Feb 2015, Duke Energy acquired a majority stake in a supplier of commercial solar and energy solutions, REC Solar. In 2014, the company received approval from the North Carolina Utilities Commission for a solar power expansion plan in North Carolina and acquired a solar photovoltaic project from utility-scale solar projects developer HelioSage Energy.
In 2014, Duke Energy’s capital expenditure stood at nearly $5.38 billion. The company’s total capital expenditure between 2015 and 2017 is estimated at around $24.6 billion, including $7.4–$7.8 billion allocated for 2015.
Duke Energy has invested over $4 billion over the last eight years in its solar and wind projects. The company further plans to spend $2–$3 billion in coming five years for renewable projects.
Apart from Duke Energy, many utility firms including NRG Energy, Inc. NRG and Exelon Corporation EXC are currently expanding their respective renewable electricity generation capacity. These ventures will enable utility providers to meet stringent environmental regulations.
Duke Energy currently holds a Zacks Rank #3 (Hold).
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