Dominion Multiplies Solar Projects - Analyst Blog

In an effort to expand its renewable energy portfolio, Dominion Resources, Inc. D acquired six solar projects from Recurrent Energy. The solar projects are based in California's Fresno, Kern and Kings counties.

Recurrent Energy develops utility scale projects with the help of clean sources, with an objective to lower greenhouse emission while producing electricity.

The construction on these projects was initiated in the first quarter of 2014 and the projects are expected to come online by the end of this year or at the beginning of next year.

The acquired solar projects will not only complement Dominion's long-term regulated contracts but also be eligible for Federal Investment Tax Credits. Dominion besides boosting its green portfolio is also focused on its regulated businesses while systematically divesting the unregulated retail electric segment this year.

Dominion currently owns 41 megawatts (“MW”) of solar energy in Georgia, Connecticut and Indiana. Last year, the company placed a number of renewable projects into service including three solar projects which started operations in the fourth quarter of 2013. In the coming two years, the company indents to amplify its fleet of contracted solar projects by as much as 250 MW.

More and more utilities like Dominion are modifying their utility generating portfolios to incorporate green assets to keep up with regulatory requirements. Investing in renewables will save these companies from the additional cost of compliance for running coal-fired units and fulfil the alternate energy production goals that have been set in most U.S. states.

Other Stocks to Consider

Dominion Resources currently has a Zacks Rank #3 (Hold). Other better-ranked stocks include Black Hills Corporation BKH, Otter Tail Corporation OTTR and Public Service Enterprise Group Inc. PEG. All these stocks sport a Zacks Rank #1 (Strong Buy).