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NRG Energy Innovates Renewable Plans for Texas Customers

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NRG Energy Inc (NRG - Free Report) and Cypress Creek Renewables will jointly develop a 25 megawatt (MW) solar project in Texas. Per the agreement, Cypress Creek Renewables will develop and operate the project. The clean energy produced from the project will allow NRG Energy to cater to the demand of its commercial and industrial customers.

Details of the Innovative Plan

Electricity is traditionally distributed to customers through grids. NRG Energy, under the new innovative plan, will provide dedicated and locally-sourced electricity from renewable resource to meet the demand of customers in Texas.

Cypress Creek will own and operate the solar energy facilities and supply the electricity customers, per the power purchase agreements.

NRG Energy’s financial strength and expertise will aid the swift development of the project and provide renewable energy solutions for commercial and industrial customers.

Importance of Renewables

Fossil fuel, primarily coal, was used to produce a major volume of electricity, leading to increasing emission levels. In the past few years, renewables have witnessed significant growth, courtesy of higher emphasis on emission reduction. In addition, declining costs of solar and wind technologies as well as federal tax credits have resulted in increasing usage of renewables in the total generation mix. Per the recent reports of U.S. Energy Information Administration, usage of renewables will increase 3.8% in 2018 and will rise 3% in 2019.

Price Performance

Shares of NRG Energy have surged 103.5% against the industry’s decline of 9.0% in the last 12 months.


 

Zacks Rank & Other Key Picks

NRG Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

A few other top-ranked stocks from the same space are TerraForm Power, Inc , WEC Energy Group, Inc (WEC - Free Report) and IDACORP, Inc. (IDA - Free Report) . While TerraForm Power sports a Zacks Rank #1, WEC Energy and IDACORP carry a Zacks Rank #2 (Buy).

TerraForm Power has an average positive earnings surprise of 114.71% for the past four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 76 cents in the past 60 days.

WEC Energy posted an average positive earnings surprise of 5.07% in the past four quarters. The Zacks Consensus Estimate for 2018 moved up by a penny to $3.30 in the past 60 days.

IDACORP posted an average positive earnings surprise of 4.98% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings inched up 0.23% to $4.19 over the past 60 days.

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