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Constellation (CEG) Targets Net-Zero Emissions by 2040
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Constellation Energy Corporation’s (CEG - Free Report) management recently announced its clean energy transition plan to achieve net-zero emission. Constellation Energy will rely more on its nuclear power units and utilize new technologies to lower emission and maintain grid reliability. Constellation Energy has plans to deliver 95% carbon-free electricity by 2030 and 100% by 2040 to its customers.
Constellation Energy currently generates nearly 10% of all clean energy on the grid in the United States. It is working on new technology to lower emission and direct air capture. The company also received a U.S. Department of Energy (“DOE”) grant to test the benefits of using nuclear energy to produce hydrogen at its Nine Mile Nuclear Station on Oswego, N.Y.
Transition in Energy Space
A clear transition is quite evident in the United States utility space, with the operators in the U.S. electric power sector gradually moving toward the cleaner sources of energy to produce electricity.
Per the U.S. Energy Information Administration (“EIA”), annual share of U.S. electricity generation from renewable energy sources will rise from 20% in 2021 to 22% in 2022 and 24% in 2023, as a result of the continuing addition in solar and wind-generating capacity. Per EIA, another clean energy source i.e., nuclear power units, continued to provide about 20% of total annual U.S. electricity generation from 1990 through 2021. Some more reactors are being constructed, which will increase power production from nuclear units in the near term and contribute toward clean energy production.
Some utility companies have already announced plans to achieve net-zero emission over the next few decades. More utilities like Constellation Energy are now announcing their plans to achieve net-zero emission over the long term. Utilities like Xcel Energy (XEL - Free Report) , WEC Energy Group (WEC - Free Report) and Entergy Corporation (ETR - Free Report) , among others have already announced their plans to supply emission-free electricity to customers by 2050.
The Zacks Consensus Estimate for Xcel Energy, WEC Energy and Entergy’s 2022 earnings reflects year-over-year growth of 6.8%, 6.3% and 5.5% respectively. Long-term (three to five years) earnings growth of Xcel Energy, WEC Energy and Entergy is currently pegged at 6.4%, 6.1%and 6.7% respectively.
Price Performance
In the past six months shares of CEG have risen 11.8% against the industry’s decline of 7.7%.
Image Source: Zacks Investment Research
Zacks Rank
Currently, Constellation Energy carries a Zacks Rank #3 (Hold).
Image: Bigstock
Constellation (CEG) Targets Net-Zero Emissions by 2040
Constellation Energy Corporation’s (CEG - Free Report) management recently announced its clean energy transition plan to achieve net-zero emission. Constellation Energy will rely more on its nuclear power units and utilize new technologies to lower emission and maintain grid reliability. Constellation Energy has plans to deliver 95% carbon-free electricity by 2030 and 100% by 2040 to its customers.
Constellation Energy currently generates nearly 10% of all clean energy on the grid in the United States. It is working on new technology to lower emission and direct air capture. The company also received a U.S. Department of Energy (“DOE”) grant to test the benefits of using nuclear energy to produce hydrogen at its Nine Mile Nuclear Station on Oswego, N.Y.
Transition in Energy Space
A clear transition is quite evident in the United States utility space, with the operators in the U.S. electric power sector gradually moving toward the cleaner sources of energy to produce electricity.
Per the U.S. Energy Information Administration (“EIA”), annual share of U.S. electricity generation from renewable energy sources will rise from 20% in 2021 to 22% in 2022 and 24% in 2023, as a result of the continuing addition in solar and wind-generating capacity. Per EIA, another clean energy source i.e., nuclear power units, continued to provide about 20% of total annual U.S. electricity generation from 1990 through 2021. Some more reactors are being constructed, which will increase power production from nuclear units in the near term and contribute toward clean energy production.
Some utility companies have already announced plans to achieve net-zero emission over the next few decades. More utilities like Constellation Energy are now announcing their plans to achieve net-zero emission over the long term. Utilities like Xcel Energy (XEL - Free Report) , WEC Energy Group (WEC - Free Report) and Entergy Corporation (ETR - Free Report) , among others have already announced their plans to supply emission-free electricity to customers by 2050.
The Zacks Consensus Estimate for Xcel Energy, WEC Energy and Entergy’s 2022 earnings reflects year-over-year growth of 6.8%, 6.3% and 5.5% respectively. Long-term (three to five years) earnings growth of Xcel Energy, WEC Energy and Entergy is currently pegged at 6.4%, 6.1%and 6.7% respectively.
Price Performance
In the past six months shares of CEG have risen 11.8% against the industry’s decline of 7.7%.
Image Source: Zacks Investment Research
Zacks Rank
Currently, Constellation Energy carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.