Tuesday, December 4, 2012

PEG in Solar Deal with juwi solar - Analyst Blog

PSEG Solar Source, a subsidiary of Public Service Enterprise Group Inc. ( PEG ) has acquired the solar project worth $50 million in Milford, Delaware from juwi solar Inc. ("JSI"). Concurrently, JSI agreed to operate and maintain the services of the project apart from providing engineering and managing the construction of the facility.

Located on 80 acres of land in Kent County, Delaware, the solar project has an electric generation capacity of 15 MW DC (12 MW AC). Under a purchase power agreement, the energy and solar renewable energy credits will be sold to Delaware Municipal Electric Corporation. Juwi solar will begin the construction of the project in September and expects it to be completed in the fourth quarter of 2012.

Post construction, this solar project will be the largest solar farm in the state of Delaware. During its construction period, the solar project will create approximately 100 jobs during construction.

Public Service Enterprise continues to invest in projects that provide clean, emissions-free solar energy in order to meet solar and renewable targets and also have supportive local and state policies. The Milford solar project matches with the company's requirements.

Four other projects in collaboration with JSI that fall in line with the company's goals include: a 25.0 MW DC Queen Creek Solar Farm in Queen Creek Arizona, 12.0 MW DC Wyandot Solar Farm in Wyandot, Ohio, a 15.0 MW DC Jacksonville Solar Farm spread over an area of 100 acres in Jacksonville, Florida and a 2.2 MW DC Mars Solar Garden facility located adjacent to the Mars Snackfood's US headquarters in New Jersey.

Public Service Enterprise Group has a solid portfolio of regulated and non-regulated utility assets that offer a stable earnings base and substantial long-term growth potential. Moreover, this project has added to the company's diversified geographical base. Over the longer run, the company's growth is expected to be driven by a low-cost nuclear fleet, assumed rate relief, operational excellence, disciplined investment and added generating capacities.

However, we prefer to remain on the sidelines due to increasing cost of coal, higher pension & financial costs and power-price volatility. Like its peer, Entergy Corporation ( ETR ), the company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Based in Newark, New Jersey, Public Service Enterprise Group Incorporated is a diversified utility holding company. The company's operations are mostly located in the Northeastern and Mid-Atlantic parts of the U.S. Public Service Enterprise principally operates through three key subsidiaries: Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (PSEG Power) and PSEG Energy Holdings LLC (PSEG Energy). PSEG Energy Holdings has two main unregulated energy-related businesses: PSEG Global and PSEG Resources. PSEG Solar Source LLC is a wholly owned subsidiary of PSEG Global. It was formed to develop, construct, own and operate large-scale solar facilities outside of the PSE&G's regulated service area.

Source: http://community.nasdaq.com/News/2012-09/peg-in-solar-deal-with-juwi-solar-analyst-blog.aspx?storyid=176496

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