Australia has 22 million reasons to celebrate after planting more than 1.3 million trees at this year’s National Tree Day and Schools Tree Day, bringing the total number to over 22 million trees planted by more than 3.5 million participants since our c…
Governor Jerry Brown, pressing the California agenda on renewable energy and climate change, followed up his successful appearance earlier this month at the Climate Summit of the Americas in Toronto with what looks like an even more successf…
With so much focus on the U.S. commitment to African energy and economic development through Power Africa and Trade Africa, Obama’s choice of attending this minor event over other major economic summits scheduled in the region might seem a b…
Republican presidential candidate Jeb Bush said Wednesday that if elected in 2016, he would cut subsidies for both fossil fuels and renewable energy.
Read more: Jeb Bush, Jeb Bush 2016, Jeb Bush Fossil Fuels, Jeb Bush Renewa…
In a lopsided 23-3 vote, the U.S. Senate Finance Committee voted yesterday to extend a number of renewable energy production tax credits through the end of 2016. The vote allows developers of wind, geothermal, biomass, landfill gas, incremental hydroel…
Warren Buffet’s utility NV Energy has signed the lowest price contract for solar ever, at just US $0.0384 for First Solar’s 100-MW Playa Solar project, beating even its own record low price of $0.046 cents for SunPower’s 100-MW project in Boulder City, Nevada.
Both solar projects benefit from new streamlined permitting set up through the Bureau of Land Management’s (BLM) Western Solar Plan, which designated 19 Solar Energy Zones (SEZ). This auction covered six parcels across 3,083 acres in Nevada. The previous case-by-case way to permit solar on BLM land was taking at least two years; and even longer if anything to tripped up the process.
by Debra Fiakas CFA
New Jersey-based NRG Energy, Inc. (NRG: NYSE) NRG serves
about 2.8 million customers in the northeastern U.S. with
electricity generated from a mix of conventional and renewable power
sources – 95 fossil fuel and nuclear power plants, 14
utility-scale solar power plants, and 35 wind farms. It has
been good business for NRG, raking in $16.2 billion in total sales
in the twelve months ending March 2015. NRG converted $1.4
billion of those sales to operating cash. That helps support a
dividend payout policy that will put $0.58 per share in holders’
pockets next year.
NRG wants to be more than the ordinary electric utility, powering
lights and appliances. The company is trying to serve electric
vehicle owners with its EVgo in-home charging units. NRG has
also set up a network of stations for away-from-home charging called
EVgo Freedom Stations. The company claims ‘hundreds” of
stations and that it “continues to expand nationally.” Some
are located along major highways, but most are in parking lots
adjacent to major retailers.
To establish its footprint in the electric vehicle charging market,
NRG is offering free charges at its Freedom Stations to owners of
Nissan LEAF electric cars. The company also provides a
selection of charging plans to win loyalty from electric car
owners. Its pitch for in-home charging units is pinned to a
promise of no up-front costs and payment plan choices to fit the car
For conservative investors who cannot stomach the risks inherent in
the small, early-stage
car charging companies described in the last post, NRG
presents an interesting alternative. Of course, a stake in NRG
is really a play on electricity generation and distribution and not
a pure play on electric car charging. However, as garages
become increasingly homes to electric vehicles, the growth
opportunity presented to electric utilities cannot be
overlooked. With the EVgo brand, NRG seems to have a head
start in capturing the electric car charging opportunity.
NRG will not be a cheap play at least in terms of price-to-earnings
multiples. The stock is currently trading at 65.4 times the
consensus estimate for 2016. However, there appears to be
quite a bit of noise in EPS. Thus multiples of assets or cash
earnings might be more helpful. It is also worthwhile noting
that NRG has been in a slump in recent weeks and the stock looks
enticingly oversold near its 52-week low.
Debra Fiakas is the Managing Director of Crystal Equity
Research, an alternative
research resource on small capitalization companies in selected
Neither the author of the Small Cap
Strategist web log,
Crystal Equity Research nor its affiliates have a beneficial
interest in the companies mentioned herein.