NextEra monster 4.5GW deal with utility is among largest in US green power history

Entergy has signed an agreement with NextEra Energy Resources to jointly develop 4.5GW of solar generation and storage projects over the next five years, among the largest multi-year US clean energy partnership deals between an electric utility and independent power producer.

Energy Resources, the leading battery storage, solar, and wind developer outside China, did not disclose the contract’s value or its potential impact on parent NextEra Energy’s earnings. On Friday, NextEra closed at $75.39, down 1.7%.

Rod West, group vice president of utility operations for Entergy, said the agreement “will enable Entergy to provide our customers with low-cost, renewable energy as demand grows across Arkansas, Louisiana, Mississippi, and Texas.”

Entergy, based in New Orleans, late last month obtained regulatory approval to add up to 3GW of grid-scale solar capacity, a sign the southern state closely identified with fossil fuels has begun to pick up the pace in transitioning to cleaner power sources.

The expansion is the largest ever for renewable power in Louisiana and almost 10 times 352MW of solar capacity installed there as of 1 January. Solar provides less than one percent of the state’s electricity. Natural gas comprises 68%, nuclear 15%, coal 8%, and 9% a mix of carbon and clean technologies.

Louisiana ranks third among the states with the highest total electricity consumption on a per capita basis with industry consuming 42% of the total each year, then residential (33%), and commercial (25%).

It also has the highest residential sector per capita consumption among the 50 states, partly a reflection of a sub-tropical climate, but also that 70% of households rely on electricity for cooking and home heating.

“We believe the power sector is at an inflection point, and growing electricity demand will be met by low-cost, renewable generation and storage,” said Rebecca Kujawa, CEO of NextEra Energy Resources.

Entergy and NextEra had been working to advance more than 1.7GW of renewable energy projects before the new deal was announced late Friday, increasing their portfolio to more than 6.2GW.