battery storage systems As NextEra Charges Into Batteries, Should You Charge Into NextEra?

Along the shore of Lake Michigan south of Ludington, you'll see a 100-
We drove two miles along our Highway 31. What is it?
This is a manually built Ludington Pumped Storage facility. 5 by 1 mile 100
An artificial lake that can accommodate 27 billion gallons of water.
Completed in 1973, costing $0. 315 billion, during a period of low power demand, the reservoir was filled with water pumped from Lake Michigan, and then in a period of high demand, the water was released, hydro-electric.
Today, the reservoir is filled with energy generated by nearby wind turbines.
Pumped storage facilities in Lettington
The author's photo, but something meaningful in 1973 is now basically out of date.
There is a new way of energy storage for utilities.
Big battery. In fact, grid-
Connected battery storage in the United States grew by 68% last year. S.
Simply put, the cost of batteries has dropped dramatically over the past few years.
Now, the outlook for batteries is brighter as costs continue to fall.
For a long time, of course, utilities have had to cope with the volatility of demand.
In addition to pumping water and electricity, traditional remedies include purchasing power, building peaker factories, variable prices, electricity restriction, etc.
It's all expensive.
The battery with reasonable price can be installed quickly, located almost anywhere, and can respond as soon as needed once installed.
(Try to do these things with a 10,000 acre pumped storage facility.
) In November 20, Tesla CEO Elon Musk won $50 million to say that his company had a small wind power of 100 MW/129MWh (100-
Megawatt/129 to power the grid-
Storage time per megawatt)
Ion batteries are used within 100 days to help solve the South Australian power grid problem.
This is a great success.
Still the world's largest South Australian battery could pay for itself within a year. a win-win-
Win for battery owners, power grids and customers.
This is a wake-up call to utilities everywhere.
In fact, the South Australian battery may not be the largest battery in the world.
200 MW/800MWh vanadium-
Flow one is building in Dalian, China, west of Beijing.
(For those who are interested, vanadium-
Compared to lithium, the mobile battery has several advantagesion ones -See here.
) Back in North America, the continent's largest utility company, nextrix Energy (NEE), is introducing charge (arguably) into the battery.
Go to its website and the first thing you see is: "lead the country in energy storage ".
Nexteer is a $81 billion market.
Cap, which has nearly 46,000 MW of power generation capacity and $16 in revenue. 5 billion.
The company's largest subsidiary is Florida Power and Lighting (FPL), which provides
About 10 million people in Florida are regulated by electricity.
Nexus Energy is the world's largest producer of renewable Energy.
As mentioned earlier, the company claims and may be a leader in North American utilities
Extended battery storage.
So, what does Nexteer do with storage?
From the website, it seems that the main battery.
The company is currently running more than 100 MW of battery energy storage systems and plans more. Read on.
Nexteer is currently building the largest building in the United States. S.
Solar storage (74.
5 MW/40MWh) facility located in the Solar Center of Babcock Ranch outside Fort Myers, South Florida.
Babcock will become 17,000 after it is completed-
Acres, 8,000 planned communities. Solar-
Power Generation (more than the needs of the ranch) will provide power to the community as sunny weather will exceed the time it takes to charge the grid or lithium batteryion batteries.
Then, the battery runs out on the night of the peak demand.
In Arizona, nextrix is working with the Salt River Project (the largest power and water utility in Arizona) and has just opened a 20 MW/10MWh solar storage facility --
Largest in Arizona
The center is expected to provide enough electricity to 5,000 households.
As with the Babcock Ranch, the battery will be used to increase power during peak demand at night.
Nexteer may also bid for a large battery installation in several other plans --
Four of them are larger than South Australian batteries.
Is this making the company a good investment, thanks to the introduction of charging into the battery sector in North America? Well, maybe.
Let's look at the company's financial situation and some risks.
The financial position of Nexteer looks good.
Total revenue for the last four quarterly statements was $16. 5 billion, up 4. 6% year-over-year.
PEG ratio is 0. 10.
The gross profit margin is 41% and the operating profit margin is 32%.
The company's trailing PE is 10, forward-
It looks like PE is 20 (the utility average is 17 ).
Total debt is 99.
The dividend ratio is currently 2.
57% (low utilities), the most recent increase was in last February.
At the time of writing this report, the stock was 171, 52-week high.
This trend has been rising since the beginning of February.
The return on assets is 8.
7%, the return on equity is 27. 9%.
As for the risk, I think the biggest risk for nextrix (and other power companies) is the risk of grid failure. Customers -
Residential, commercial and community-
You can generate electricity by yourself through the solar cell project and give up the power grid.
It is not clear how all of this will evolve, but at least distributed generation gives customers a greater impact in dealing with utilities and regulators.
We have started to see some flaws in the grid.
Sunny states such as Hawaii and (to a lesser extent) California.
Projects such as Florida, sunshine, nextons, Corker Ranch, may hope to pre-
Seize grid defects.
SunPower (SPWR) has added storage to its 35% commercial project, while in Hawaii, Sunrun (RUN) is providing its Brightbox, the combined price of a solar + battery starts at 19 cents per kilowatt hour, nearly 50% cheaper than the grid.
Another risk for NexEra is that one of the eight nuclear power plants failed.
History has proven that when things get bad, they get very bad.
Billions of dollars in bad debt
It does seem, however, that nextrix is reducing its nuclear exposure
Its two factories are scheduled to close.
In Iowa, customers could save $0. 3 billion when the Allianz plant retired in 2020.
In addition, there is interest rate risk in nextrix.
All utility companies due to their bonds
Like nature, rising interest rates, which are affected by interest rates, usually mean falling prices.
In September of 2015, James Robo, CEO of Nexteer, said,
2020, there may never be another peaker [power plant] in the United States.
"He seems right, and even Texas, because of its deep-rooted fossil-fuel interests, is moving towards green.
Large power plant, long high-
The voltage power cord and huge storage facilities such as the Ludington Pumped Storage Power Station will fade out of the site as a small customer
Control, in or near-
On-site power generation facilities surge.
Nexteer sees these trends, but even they can only make educated guesses about how all of this will evolve. We will see.
Statement: As always, investors should do their own research and due diligence before investing in nextrix or any other company.
Renewable energy is a new area and it is difficult to determine who is the winner.
Disclosure: I am/We are the long-term NEE for TSLA SPWR.
This article was written by myself and expressed my views.
I have not received compensation (except for Seeking Alpha ).
I have no business relationship with any stock company mentioned in this article.