New renewables initiatives continued to gas progress at NextEra Vitality within the third quarter of 2019. The corporate’s renewables backlog, encompassing its pipeline in upcoming years, ballooned once more in Q3 to prime 12 gigawatts, executives mentioned throughout Tuesday’s earnings name.
That capability is up from 11.7 gigawatts in Q2 partly because of the addition of 747 megawatts of photo voltaic and 341 megawatts of storage. Thus far in 2019, greater than half of the photo voltaic initiatives added can be paired with storage “as prospects are more and more excited by a near-firm low-cost renewable product,” CFO Rebecca Kujawa mentioned.
NextEra continues to put money into pure fuel — on Monday the corporate introduced the signing of an settlement for the 50-mile Lowman pipeline in Alabama and mentioned plans to accumulate the Meade Pipeline Firm. Nevertheless it’s lengthy been a renewables chief amongst large power firms. Over the past a number of quarters NextEra has loved “the most effective renewables growth surroundings in our historical past,” mentioned Kujawa.
“We proceed to imagine that NextEra Vitality Companions stays uniquely effectively positioned to capitalize on the continuing disruption within the nation’s energy era fleet over the approaching years,” she mentioned.
Third quarter earnings for NextEra Vitality Sources, the corporate’s aggressive power enterprise, got here in at $zero.87 per share, in comparison with $zero.73 per share for Q3 2018.
Although the renewable enterprise is rising, Kujawa mentioned the corporate feels “pure fuel will play an essential position within the nation’s clear power future” at the same time as the corporate acknowledges “there are only a few pipelines that match NextEra Vitality Companions’ funding standards of being long-term contracted with creditworthy counterparties.”
Pure fuel challenges, photo voltaic progress, Hurricane Dorian restoration prices
NextEra is at present a companion on the embattled, 303-mile Mountain Valley Pipeline, which has confronted important building delays and federal regulatory hurdles. Prices for that challenge have continued to tick upwards, now reaching $5.four billion for all companions. Kujawa mentioned Tuesday that NextEra has contributed a bit greater than $1 billion to that complete however can be insulated from important impacts within the occasion of its full cancellation due to the corporate’s huge steadiness sheet.
The corporate’s portion of era capability from pure fuel has declined from a peak of about 9.6 gigawatts in 2015 to about 7.three gigawatts on the finish of 2018 (its pure fuel/oil era stays greater, at 13.four gigawatts) whereas it’s bulked up its renewables portfolio. Although the corporate stays the most important proprietor of U.S. wind capability, its photo voltaic era has inched up from 952 megawatts in 2014 to three.2 gigawatts in 2018. And regardless of preserving fuel within the combine, NextEra frames its buildout of renewables amongst its “main initiatives.”
In saying Q3 outcomes, the corporate mentioned its at present on observe with the development of ten photo voltaic websites totaling 750 megawatts in Florida, which can assist attain subsidiary Florida Energy & Gentle’s “30-by-30” objective to put in 30 million photo voltaic panels by 2030. The corporate additionally plans to deliver the primary photo voltaic challenge for brand new subsidiary Gulf Energy, which NextEra formally acquired in January, on-line in 2020. Earlier this month, the corporate reached a settlement in October for a 1.5-gigawatt neighborhood photo voltaic program in Florida.
On Tuesday the corporate additionally estimated its storm restoration prices from Hurricane Dorian, which made landfall in Florida in early September, at $274 million. Because of Florida’s lately handed laws on Public Utility Storm Safety Plans, FP&L and Gulf Energy ought to quickly be sinking new cash into resilience preparedness. In a June investor presentation, NextEra mentioned undergrounding distribution laterals may value $25 to 35 billion over 20 to 30 years, which it might be allowed to get well from ratepayers beneath the brand new regulation if regulators approve the utility’s plan.
“This represents a multi-decade alternative and tens of billions of of potential funding into our grid infrastructure,” mentioned Kujawa on the decision.
Regulators are within the means of finalizing guidelines for that laws.