Exelon Expands Solar Power Assets – Analyst Blog

August 30, 2012 by  
Filed under Green Energy News

Exelon Corporation

‘s (
EXC

) Constellation business unit announced that the company has
completed its 16.1 megawatt (“MW”) power grid-connected
photovoltaic (“PV”) solar facility in Emmitsburg, Maryland. The
company has spent approximately $50 million for this project.
Exelon expects this facility to generate more than 20 million
kilowatt hours (“KWh”) of emissions-free electricity annually.

The electricity generated from this solar plant will be sold to the
state’s Department of General Services and the University System of
Maryland under the 20-year solar power purchase agreements (“PPA”).

The company has installed this plant under the Generating Clean
Horizons initiative of the state of Maryland. The Generating Clean
Horizons initiative is a partnership between the state of Maryland
and the University of Maryland, formed in February 2009. The main
objective of this initiative is to encourage large-scale commercial
renewable energy projects in the region for creating more green
jobs.

First Solar, Inc.

(
FSLR

) developed this ground-mounted solar power plant, utilizing
approximately 220,000 of its advanced thin film PV panels. This
project site is situated on 100 acres of land leased by Exelon from
Mount St. Mary’s University.

Moreover, this 16.1 MW power grid-connected PV solar project
facility will produce clean and renewable electricity while
reducing the fear of harmful air emissions and waste
production.

According to the U.S. Environmental Protection Agency (“EPA”)
records, this project is likely to displace yearly carbon dioxide
emissions by approximately 17,981 metric tons. This project not
only takes the company closer to its carbon emission goals, but
also enables to provide customers clean and affordable energy.

Currently, Exelon has approximately 112 MW of solar installations,
which includes 25 MW in Maryland. We believe the addition of this
PV portfolio expands Exelon’s coverage in the Maryland solar energy
market. Since Exelon has 20-year PPA, it is likely to generate
steady revenue in the near term.

We believe Exelon’s continuous effort toward expansion of its solar
portfolio will create a win-win situation for each of the parties,
including consumers and the government. As a result of power
purchase or solar services agreements, the company offers solar
installations without upfront capital investments from the
customers and tries to provide fixed power costs that are lower
than the market rates.

In addition, these green projects also create new jobs, which
are expected to subsequently minimize the unemployment level. At
the same time, the company will likely secure steady cash flow from
its operations.

However, we are skeptical about the effects of volatile weather
patterns, rising long-term interest rates and higher operating
costs, which might challenge Exelon’s future performance.

Chicago, Illinois-based Exelon Corporation, a utility services
holding company, engages in the generation, transmission,
distribution and sale of electricity to residential, commercial,
industrial and wholesale customers. Exelon Corporation currently
retains a Zacks #3 Rank, which translates into a short-term Hold
rating.

 

EXELON CORP (EXC): Free Stock Analysis Report

 

FIRST SOLAR INC (FSLR): Free Stock Analysis
Report

 

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