Credit: NextEra Energy
Entergy and NextEra Energy Resources, a subsidiary of NextEra Energy, today announced a five-year joint development agreement that will accelerate the development of up to 4.5 GW of new solar generation and energy storage projects. The agreement represents significant progress toward Entergy’s growing portfolio of renewable generation.
“We’re excited about this joint development agreement, which will enable Entergy to provide our customers with low-cost, renewable energy as demand grows across Arkansas, Louisiana, Mississippi and Texas,” said Rod West, group president of utility operations for Entergy.
“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, president and CEO of NextEra Energy Resources. “We’re pleased to reach this agreement because it further strengthens our long-standing collaboration and adds up to 4.5 GW on top of the more than 1.7 GW of renewable energy projects already underway with Entergy.”
News item from Entergy
There’s a codicil in all of this enthusiasm. Depending on how far along this JV consideration is to becoming real shovel ready projects there could be a lot of EPC that still needs to happen before construction can begin. The very recent revelation of the ‘need’ for new tariff increases may sink previously vetted designs and component purchases and put many of these projects on hold until such guidance is in place. The uncertainty is the cost of a project in 2024 dollars as opposed of waiting and doing a project in 2025….2030 dollars and what the amortization schedule looks like comparing a project online today and one curtailed until 2030 tomorrow.
Take away, Government ‘steering’ mechanisms are not necessarily effective in advancing supply chain, price point and comfort in proposed projects to allow investors to buy in.