Duke Energy Unit, Swinerton Ink Solar Deal - Analyst Blog

Duke Energy Corporation's DUK unit Duke Energy Renewables continues to expand its power generation portfolio through renewable sources. Duke Energy Renewables entered into an agreement with Swinerton Renewable Energy (“Swinerton Renewable”). As per the deal, Swinerton Renewable will provide turnkey engineering, procurement, and construction (EPC) services to the company's two solar power projects, Pumpjack and Wildwood, located near Bakersfield, CA.

On March 6, 2014, Duke Energy Renewables inked a deal with an Australian renewable energy firm Infigen Energy. The company acquired two Californian solar projects, Pumpjack and Wildwood, from Infigen Energy.

Duke Energy Renewables constructs innovative wind and solar energy generation ventures for its customers. The company has operations in 12 states of the U.S. Duke Energy Renewables has twenty-one solar and fifteen wind farms with a total power generation capacity of 1,800 megawatts MW.

Designing and procurement activities for Duke Energy Renewables' Pumpjack and Wildwood solar power projects have already started. These two set ups will each consist of a 20-MW alternating current (AC) photovoltaic (PV) facility. The project also has a new 115 kilovolt (kV) substation for interconnection to the grid. Duke Energy Renewables' solar facilities will utilize 171,000 x BYD 305 watt (W) polycrystalline modules, 40 x 1 MW NX Advanced Energy inverters and single-axis trackers of Array Technologies Inc.

The Pumpjack and Wildwood solar power projects are expected to be operational by 2014. These two facilities can jointly generate 40 MW of clean electricity. Post completion, Duke Energy Renewables will own and operate over 65 MW of solar power in California, totaling 185 MW from twenty-three U.S.-installed solar assets in the U.S.

Currently, the use of renewable energy is increasing primarily due to its clean nature and a growing awareness among the masses regarding its benefits. These influence utility providers to shift their method of power generation to solar, wind and water.

It is evident from past records that Duke Energy is extending its renewable power generation asset base. In 2013, the company constructed a 21-MW Highlander Solar Power Project in Twentynine Palms. Duke Energy also purchased the 4.5-MW Sunset Reservoir project in San Francisco.

Apart from Duke Energy, its peers Dominion Resources, Inc. D and Exelon Corporation EXC are investing to construct their renewable utility assets to comply with stringent government regulations.

Duke Energy Renewables will sell the output from the two solar assets to Southern California Edison, a subsidiary of Edison International EIX, under a 20-year power purchase agreement. We believe signing of long-term agreements will enable the company to secure a stable revenue stream going forward. A steady cash inflow will also support the company to invest more in new ventures.

Charlotte, NC-based Duke Energy Corporation currently has a Zacks Rank #3 (Hold).