Avangrid Produces First Energy from True North Solar Project in Texas, Construction Continues On Schedule

Rhea-AI Summary

Avangrid (NYSE: AGR) has begun producing power from its True North solar project in Falls County, Texas, marking a significant milestone. The project has commissioned 20 MW so far, with full commercial operations expected by the end of 2024. True North will be Avangrid's largest solar power project and its first in Texas, with a total capacity of 238 MWac (321 MWdc).

The project will supply clean energy to support Meta's net zero commitment, including its upcoming data center in Temple. It's expected to generate over $40 million in property taxes over its lifetime, benefiting local public services and schools. Avangrid has a strong presence in Texas, with over 1,200 MW of installed wind capacity and more than $100 million paid in property taxes from existing facilities.

Positive

• Commissioned 20 MW of the True North solar project, on schedule for full operations by end of 2024
• True North will be Avangrid's largest solar power project with 238 MWac capacity
• Project will support Meta's net zero commitment and its new data center
• Expected to generate over $40 million in property taxes over project lifetime
• Avangrid has 1,200 MW of installed wind capacity in Texas

Negative

• None.

Insights

Energy Market Analyst

Avangrid's progress with the True North solar project in Texas is a significant milestone, not just for the company but also for the state's energy market. The commissioning of 20 MW is the first step towards achieving the full 238 MWac capacity. This project aligns well with the growing demand for renewable energy sources, especially in a state that has been diversifying its energy portfolio.

The fact that the project will supply power to Meta’s data center is noteworthy. Companies like Meta are increasingly committed to sustainability and securing a renewable energy source helps them meet their net-zero goals. This partnership also ensures a stable demand for the energy produced, providing a steady revenue stream for Avangrid.

Additionally, the economic benefits like job creation and $40 million in property taxes over the project's life are essential for local communities. These factors make the project economically beneficial, beyond its environmental impact.

For investors, this project signals Avangrid's continued capability in completing large-scale renewable projects. This could enhance the company’s market position and potentially increase shareholder value in the long run.

Financial Analyst

The commencement of energy production at the True North solar project is a positive indicator for Avangrid's financial health. The project, once fully operational, will add substantial capacity to their renewable energy portfolio, potentially leading to increased revenue streams. With commercial operations expected to begin at the end of 2024, the timeline suggests a near-term boost to the company's revenue.

The agreement with Meta to supply 100% renewable energy to their data center is crucial. Such contracts often come with long-term power purchase agreements (PPAs), providing Avangrid with predictable and stable revenue. This long-term stability is attractive to investors seeking low-risk, steady returns.

Moreover, the impact on local communities through property taxes and job creation can enhance the company's public image and foster goodwill, which is beneficial for long-term growth and community relations.

Sustainability Expert

From a sustainability perspective, the True North solar project is a significant step towards reducing carbon emissions and promoting clean energy. Texas has been historically reliant on fossil fuels, so increasing the share of renewable energy is a positive environmental shift. The project's full capacity of 238 MWac will contribute significantly to reducing the carbon footprint in the region.

This project supports Meta’s net-zero initiative, highlighting the growing trend of tech companies prioritizing sustainability. By facilitating such initiatives, Avangrid not only contributes to environmental goals but also strengthens its position as a leader in the renewable energy sector.

Furthermore, this project can serve as a model for future renewable energy developments in other regions, demonstrating the feasibility and benefits of large-scale solar energy projects.

Avangrid has commissioned 20MW of the project thus far, with commercial operations expected to begin by the end of the year

FALLS COUNTY, Texas--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, announced that it has begun to produce power from the True North solar project in Falls County, Texas, near Waco. With 20 MW commissioned thus far, this marks another major milestone for what will become the largest solar power project in Avangrid’s portfolio, and its first solar project in Texas.

“This is great news, not just for the on-time construction of True North, but for the state of Texas at large. Thanks to the diligent work of our team and our contractors, we are able to supply additional energy to the Texas electrical grid as we move into the summer months,” said Pedro Azagra, Avangrid CEO. “I am happy to see this project moving forward as Avangrid continues on its mission to accelerate the clean energy transition across America.”

True North will be a 238 MWac (321 MWdc) solar farm. Once the project is built, it will supply clean, renewable energy in support of Meta’s net zero commitment, including supporting its upcoming data center in neighboring Temple, its second data center facility in Texas, with 100 percent renewable energy. Ahead of commercial operations, expected at the end of 2024, the project will supply power to customers on the Texas grid.

During its construction and operation, the project is creating local jobs and supporting local communities. It is expected to pay more than $40 million in property taxes over the life of the project, which directly supports public services like safety and fire protection, as well as local schools.

Avangrid has successfully developed, built, and operated renewable energy facilities in Texas for more than 15 years, with more than 1,200 MW of installed wind capacity. The company has paid more than $100 million in property taxes from its existing facilities.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $45 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240715130620/en/

Media Contact:

Keaton Thomas

Keaton.thomas@avangrid.com

503-956-9621

Source: AVANGRID, Inc.

FAQ

What is the capacity of Avangrid's (AGR) True North solar project in Texas?

Avangrid's True North solar project in Texas will have a total capacity of 238 MWac (321 MWdc), making it the company's largest solar power project.

When is Avangrid's (AGR) True North solar project expected to be fully operational?

Avangrid's True North solar project is expected to be fully operational and begin commercial operations by the end of 2024.

How much has Avangrid (AGR) commissioned of the True North solar project so far?

Avangrid has commissioned 20 MW of the True North solar project in Texas so far.

What is the expected economic impact of Avangrid's (AGR) True North solar project?

Avangrid's True North solar project is expected to pay more than $40 million in property taxes over its lifetime, supporting local public services and schools.