Duke Energy Corp. (DUK) recently signed an agreement with Sun Edison and will buy electricity generated at the privately held company’s solar farm at Davidson County in North Carolina. The 16.1MW facility is touted as the largest photovoltaic solar farm in the U.S.
The solar farm will serve dual purposes for Duke. It will add 16.1MW of annual capacity to its kitty. Secondly, it will go green. According to the company’s estimates, the same amount of electricity produced from fossil fuels would have emitted 32.3 million pounds of carbon dioxide annually. Duke Energy would then be required to offset it by spending more on carbon credits following the American Clean Energy and Security Act.
The act stipulates stringent caps against carbon dioxide emissions. Duke Energy expects the facility to be operational by December 2010.
Based in Charlotte, North Carolina, Duke Energy is a diversified energy company. It supplies electricity to approximately 4 million U.S. customers. It has approximately 36,000MW of electricity generating capacity in the Midwest and the Carolinas. We have a Neutral recommendation on the shares.
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