True North Solar Project Achieves Construction Milestone with Delivery of Main Power Transformers

Rhea-AI Summary

Avangrid, Inc. (NYSE: AGR) has achieved a major milestone with the delivery and installation of Main Power Transformers at its True North solar project in Texas. The project, once complete, will be Avangrid's largest solar project, supplying clean, renewable energy to Meta's upcoming data center in neighboring Temple. The farm is expected to create local jobs and contribute over $40 million in property taxes over 25 years in the state. Avangrid's CEO, Pedro Azagra, expressed optimism despite challenges facing the solar market, emphasizing the company's commitment to accelerating a clean energy transition.

Insights

Energy Sector Analyst

The installation of Main Power Transformers at Avangrid's True North solar project is a significant development within the renewable energy sector. The successful deployment of such critical components indicates the project is advancing as planned, which is particularly noteworthy given the current challenges in the solar market, such as supply chain disruptions and policy uncertainties. The project's capacity of 240 MWac (321 MWdc) positions it as a considerable contributor to the grid and its support of Meta's data center with 100% renewable energy aligns with broader corporate sustainability goals.

The economic implications are twofold: the project enhances Avangrid's renewable portfolio in a region where it already has a strong presence in onshore wind energy and it will contribute to the local economy through job creation and property tax payments. Over 25 years, the expected $40 million in property taxes signifies a long-term investment in the community's infrastructure and public services. This project could potentially set a precedent for future renewable energy initiatives in Texas, influencing the state's energy mix and sustainability trajectory.

Financial Analyst

From a financial perspective, Avangrid's investment in the True North solar farm may have a positive impact on the company's stock performance (NYSE: AGR). Investors often view advancements in renewable energy projects favorably, especially when they are on schedule and underpin large-scale commercial agreements, such as the one with Meta's data center. The project's alignment with Meta's net zero commitment could also attract ESG-focused investors, who are increasingly influential in the market.

However, it is essential to monitor the operational efficiency and cost management of the project, as these factors will ultimately determine its profitability and return on investment. The project's successful completion and operation could lead to increased revenue streams for Avangrid and provide a hedge against regulatory risks associated with fossil fuels. Long-term financial benefits such as property tax payments also indicate a stable income source for the region, which could enhance shareholder value.

Environmental Policy Expert

The True North solar project reflects a growing trend of energy companies like Avangrid diversifying their portfolios with renewable energy assets. This move is not only a response to market demand but also to policy shifts encouraging clean energy transitions. By supplying renewable energy to Meta's data center, Avangrid is contributing to the broader goal of carbon neutrality in the tech industry, which has been under scrutiny for its energy consumption.

Moreover, the project's compliance with Meta's net zero commitment may influence energy policy discussions by showcasing the viability of large-scale renewable energy solutions for corporate consumers. The environmental benefits, such as reduced greenhouse gas emissions and sustainable energy production, will likely be used as a benchmark for future energy policies and corporate sustainability standards. This project could serve as a model for public-private partnerships in achieving environmental goals, potentially influencing legislation and regulations in favor of renewable energy developments.

Avangrid’s first solar farm in Texas, project will supply renewable energy to Meta’s upcoming data center in neighboring Temple

PORTLAND, Ore.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced that it has delivered and installed both Main Power Transformers at its True North solar project, marking a major milestone for the company’s first solar farm in Texas. Module and racking system installation also continues to progress on site as overall project construction remains on schedule.

Delivery of Main Power Transformers (Photo: Business Wire)

“We are thrilled to see construction at True North progressing smoothly as we reach this major milestone, despite several challenges facing the solar market,” said Pedro Azagra, Avangrid CEO. “True North will be our largest solar project once complete, and represents Avangrid’s unwavering commitment to accelerating a clean energy transition.”

True North, a 240 MWac (321 MWdc) solar farm in Falls County, will supply clean, renewable energy in support of Meta’s net zero commitment, including supporting its upcoming data center in neighboring Temple, their second data center facility in Texas, with 100% renewable energy.

True North will be Avangrid’s first solar farm in Texas. During its construction and operation, the project is creating local jobs to support the surrounding community. It is expected to pay over $40 million in property taxes over 25 years in the state, in which the company already operates more than 1,200 MW of onshore wind 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 $42 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 more than 7,500 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. 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 2023 for the fifth 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/20240206282660/en/

Keaton Thomas

Keaton.thomas@avangrid.com

503-956-9621

Source: AVANGRID, Inc.

FAQ

What is the ticker symbol for Avangrid, Inc.?

The ticker symbol for Avangrid, Inc. is AGR.

What is the name of Avangrid's first solar farm in Texas?

Avangrid's first solar farm in Texas is called True North.

What is the expected capacity of True North solar farm once complete?

The expected capacity of True North solar farm is 240 MWac (321 MWdc).

Where will the renewable energy from True North solar farm be supplied to?

The renewable energy from True North solar farm will be supplied to Meta's upcoming data center in neighboring Temple.

How much is True North solar farm expected to pay in property taxes over 25 years?

True North solar farm is expected to pay over $40 million in property taxes over 25 years.