Dive Brief:
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NextEra Energy Resources and Entergy have signed a joint development agreement for up to 4.5 GW of solar and energy storage over the next five years, the companies announced on Friday.
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Although the details of the projects have yet to be announced, the agreement is focused on projects that Entergy could self-build or acquire and own, according to a company spokesperson.
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The agreement will allow Entergy to access NextEra Energy's supply chain and leverage its development expertise in order to expand Entergy's renewable energy portfolio, according to Entergy.
Dive Insight:
Entergy intends the partnership with NextEra Energy to further accelerate the growth of its renewable energy portfolio, which comes less than a month after the company announced plans for a 3 GW expansion in Louisiana.
The partners are open to building in any of the four states within the Entergy footprint — Arkansas, Louisiana, Mississippi and Texas — Rob West, group president of utility operations for Entergy, said in a statement. Exact locations have yet to be announced and an Entergy spokesperson said it “remains premature” to discuss specific projects “or speculate on what projects the parties might engage on.”
Together with the expedited review process approved last month for new renewable energy projects in Louisiana, the agreement will help Entergy accelerate its renewable energy expansion pans, the spokesperson said.
The expedited review process and the associated 3 GW expansion planned in Louisiana, as well as the 4.5 GW partnership with NextEra Energy Resources, were triggered by growing demand for clean energy across the Entergy service area, the spokesperson said. The joint agreement does not prevent Entergy from also entering into power purchase agreements with NextEra Energy, as it has done in the past, the spokesperson said.
"We believe the power sector is at an inflection point, and growing electricity demand will be met by low-cost, renewable generation and storage. 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,” Rebecca Kujawa, president and CEO of NextEra Energy Resources, said in a statement.
Based on integrated resource plan filings, NextEra expects Entergy to need up to 6.2 GW through 2029 to meet growing demand, according to a June 11 investor presentation.
Entergy owned 23,879 MW, including 229 MW of solar at the end of last year, according to its annual report, filed in February with the U.S. Securities and Exchange Commission. It also has various power purchase agreements with renewable energy companies.
