Duke Energy Gets NCUC Nod for North Carolina Solar Plants - Analyst Blog

Duke Energy Corporation (DUK) declared that the North Carolina Utilities Commission (“NCUC”) has approved the acquisition and construction of three solar facilities in North Carolina.

Duke Energy had earlier announced its $500 million solar power expansion plan in North Carolina in Sep, 2014. (Read More: Duke Energy to Spend $500M in North Carolina Solar Projects)

The solar expansion plan also comprises five long-term power purchase agreements.

The overall solar expansion plan has a capacity of 278 megawatts (“MW”), with the three North Carolina projects having a total capacity of 128 MW. Construction of the facilities is slated to begin in 2015 and finish by 2015-end.

The projects are located in the Bladen, Duplin and Wilson counties.

Of late, Duke Energy has made steady efforts to expand its renewable portfolio. The company is committed to the construction and expansion of the scale of solar and wind energy generation projects across the whole of U.S. In Sep 2014, it acquired a solar photovoltaic project from a utility-scale solar projects developer, HelioSage Energy. This Elm City solar facility is expected to generate approximately 82 million kilowatt-hours annually, sufficient to power about 6,800 North Carolina homes for a year. (Read More: Duke Energy Buys NC Solar Farm, Wind Project in the Cards)

In Jun 2014, the U.S. Environmental Protection Agency had proposed the Clean Power Plan to curb carbon emissions from the power sector by 30% by 2030 from the 2005 levels. The rule is expected to come into effect next year.

In order to comply with environmental mandates, Duke Energy has already invested $7.5 billion on environmental controls and spent over $9 billion to construct more efficient plants. According to the company, these investments have reduced CO2 emissions by more than 20% from the 2005 levels.

Thus, Duke Energy's efforts to expand its renewable asset base and maintain a disciplined capital investment approach will not only diversify its generation mix but also meet the environmental regulations.

Duke Energy carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Consolidated Edison, Inc. (ED), Hawaiian Electric Industries Inc. (HE) and Public Service Enterprise Group Inc. (PEG). All these stocks sport a Zacks Rank #2 (Buy).

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