Back to top

Image: Bigstock

Avangrid (AGR) Begins Power Production at Texas Solar Project

Read MoreHide Full Article

Avangrid, Inc. (AGR - Free Report) has started generating power from its True North solar project in Falls County, TX. The project has 20 MW already running, making it Avangrid’s largest solar project and the first solar project in Texas. Full operations are expected to commence by the end of the year. 

The True North project, with a total capacity of 238 MWac (321 MWdc), will provide renewable energy to support Meta’s net zero commitment, including powering a new data center in Temple, TX. 

AGR has a strong presence in Texas, with more than 1,200 MW of installed wind capacity and over $100 million paid as property taxes from its existing infrastructure. The True North project aligns with the company’s mission to accelerate the clean energy transition across the United States.

Investment in Clean and Renewable Energy

The company has invested a total of $3 billion in 2023, with nearly 74% in its Networks segment and the rest in its Renewables segment and others. In the first quarter of 2024, it invested $872 million, up 4.3% year over year.

The company is focused on the Vineyard Wind 1 project, an 806 MW utility-scale offshore wind project in Lease Area 501. The project is expected to generate clean energy equivalent to that used by more than 400,000 households and businesses in Massachusetts and reduce carbon emissions by more than 1.6 million tons per year. The company plans to create a clean-generation portfolio and achieve Scope 1 and Scope 2 carbon neutrality goals by 2035.

Usage of Renewables on the Rise

Per a U.S. Energy Information Administration release, renewable energy sources will contribute 23% of U.S. electricity production in 2024 and the share will go up to 25% in 2025. Utilities are investing in the renewable energy business to gain from the rising demand for clean energy.

Other companies investing in clean and renewable energy in the industry are CMS Energy Corporation (CMS - Free Report) , FirstEnergy Corporation (FE - Free Report) and PPL Corporation (PPL - Free Report) . 

CMS Energy is continuously investing in renewable and clean energy. It aims to invest $3.4 billion in renewables between 2024 and 2028, including wind, solar and hydroelectric projects. The company plans to add nearly 8,000 MW of solar generation and a vast battery storage capacity by 2040.

FirstEnergy has planned investments of $26 billion between 2024 and 2028 to install advanced equipment and technologies that will strengthen and modernize its transmission and distribution infrastructure. Strengthening the transmission and renewable generation assets should allow it to transmit electricity even under adverse weather conditions.

PPL’s capital investment plan primarily focuses on infrastructure construction projects for generation, transmission and distribution. The capital investment for 2024 is expected to be $3.1 billion. The company will make investments to strengthen the grid, electricity and gas distribution, and electricity transmission, and expand clean energy generation capacity.

Price Performance

Shares of Avangrid have risen 13.3% in the past six months compared with the industry’s 8.2% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

AGR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here

 

Published in