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Sempra Energy SRE announced that its subsidiary Sempra U.S. Gas & Power will expand its Mesquite Solar Complex in Arlington, AZ by adding 100 megawatts (MW) of green energy to the existing capacity.
Mesquite Solar Complex
This solar complex is situated nearly 60 miles west of Phoenix and has a total potential capacity of 700 MW. The Mesquite Solar 1 unit, completed in Dec 2012, generates enough clean electricity for about 56,000 homes. The 150 MW power produced from this unit is being sold to Pacific Gas and Electric Company, a unit of PG&E Corporation PCG, under a 20-year long-term power purchase agreement. The solar energy produced from this unit is equivalent to reducing 190,000 tons of greenhouse gas annually.
Mesquite Solar 2 is expected to be completed by late 2016. The entire output will be sold to Southern California Edison, a unit of Edison International EIX, under a 20-year power purchase agreement. It will generate enough electricity to power 45,000 homes.
Construction of Mesquite Solar 3 is already underway and the 150 MW project is also expected to be completed by the end of 2016.
Given the little cloud cover and relatively intense solar radiation, Arizona is well suited for solar energy. In addition, the increasing emphasis of the U.S. government to lower carbon footprint makes the pursuit of renewables all the more worthwhile.
Sempra Energy’s Solar Energy Focus
Sempra Energy is gradually increasing its renewable energy generation portfolio. Currently, 718 MW of solar energy is in operation in various states, out of which 660 MW is owned jointly with a unit of Consolidated Edison ED. The utility has 244 MW already under construction and Mesquite Solar 2 will further enhance its backlog.
Boom in U.S. Solar Energy
Per a release from the U.S. Energy Information Administration (EIA), utility-scale solar power generation is projected to average 89 gigawatt hours per day in 2016. The EIA expects utility-scale solar capacity to increase by more than 100% (11 GW) between the end of 2014 and the end of 2016, with 4.1 GW of new capacity being built in California alone.
More solar projects are expected to come online during 2016 to enjoy the benefit of a higher federal investment tax credit. The 30% investment tax credit will be available to solar projects which come into service by 2016. The tax credit will be slashed to 10% for solar projects coming online beyond 2016.
Zacks Rank
Sempra Energy currently carries a Zacks Rank #3 (Hold).
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Sempra Energy
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CODE : SRE |
ISIN : US8168511090 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Sempra Energy is based in United states of america. Sempra Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 20.8 billions as of today (€ 19.0 billions). Its stock quote reached its highest recent level on November 25, 2016 at US$ 99.96, and its lowest recent point on October 10, 2024 at US$ 81.33. Sempra Energy has 255 324 212 shares outstanding. |