Exelon Unit & OneEnergy to Build Solar Farm in Maryland
Constellation Energy Resources, LLC., a subsidiary of Exelon Corporation (EXC), inked a 25-year competitive electricity supply agreement with the National Aquarium. Per the contract, the company will build a 4.3-megawatt (MW) (:DC) grid-connected solar generation project, in collaboration with OneEnergy Renewables, spread over an area of 22 acres in Cambridge, MD. Constellation Energy will finance and operate the project.
During the first year of operation, the solar facility will likely produce 5.8 million kilowatt hours of electricity, which will meet over 40% of the power requirement of the National Aquarium. The company will meet the remaining power requirement at the market rate under Constellation Energy’s flexible index program.
In addition, the National Aquarium will obtain solar renewable energy credits from the solar power system.
The National Aquarium, a non-profit organization, is aimed to conserve the world’s aquatic resources.
Around 14,500 units of photovoltaic panels will be utilized in the facility. The solar farm is expected to reduce carbon dioxide emission by 4,409 tons annually. It is expected to complete in Mar 2015.
This agreement will help the National Aquarium to use clean energy and manage its energy expenses more efficiently.
Signing this long-term power supply agreement will also ensure a steady flow of income for Constellation Energy.
Exelon continues to expand its renewable generation mix through the addition of infrastructure to its portfolio. In Jul 2014, Constellation Energy entered into an agreement with Huntington Beach, CA-based turnkey solar solutions provider PsomasFMG, to construct up to 50-MW of solar distributed generation projects in California.
Exelon’s Generation division plans to invest $0.26 billion in 2014 for renewable projects. The company’s steady focus on strengthening renewable assets will enable it to maintain government’s environmental regulations besides diversifying its generation mix.
Exelon maintains a stable financial position. As of Jun 30, 2014, the company had cash and cash equivalents of $1.36 billion and $6.3 billion available under credit facilities. A balanced financial health will support Exelon’s renewable as well as other growth projects.
Exelon currently has a Zacks Rank #3 (Hold). Other better-ranked stocks worth considering in the same industry include American Electric Power Co., Inc. (AEP), Consolidated Edison, Inc. (ED) and NRG Energy, Inc. (NRG), each carrying a Zacks Rank #2 (Buy).
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