Construction is Underway on Second Utility-Grade Solar Site in West Virginia

Rhea-AI Summary

FirstEnergy Corp.'s subsidiaries Mon Power and Potomac Edison are constructing a new solar site in West Virginia to boost renewable energy production and support economic growth. The Rivesville site will generate 5.5 MW of power, benefiting from a brownfield location. The company plans to build a total of five solar sites in the state, aiming for a collective generation of 50 MW.

Insights

Energy Sector Analyst

The construction of Mon Power and Potomac Edison's new solar site represents a significant step in the energy transition within West Virginia. This move is not only about expanding renewable energy capacity but also about aligning with the growing corporate demand for green energy, which can be a competitive advantage in attracting businesses to the area. The initiative to transform a brownfield site into a utility-grade solar facility is a strategic use of land that has been previously underutilized, potentially mitigating environmental concerns and contributing to the company's corporate social responsibility profile.

The investment in local manufacturing for the solar panels and equipment underscores a commitment to domestic sourcing, which may resonate positively with stakeholders and consumers increasingly concerned with supply chain ethics and sustainability. Moreover, employing local union workers for the construction can foster community goodwill and stimulate the local economy through job creation.

The cumulative goal of generating 50 megawatts across all five planned sites could have a material impact on FirstEnergy's energy mix and operational efficiency. However, the financial implications for FirstEnergy will depend on the project's cost, the ability to secure customer subscriptions and the regulatory environment, particularly any incentives or subsidies for renewable energy projects.

Financial Analyst

FirstEnergy's investment into solar infrastructure is indicative of the broader industry trend where utilities are diversifying their energy portfolios. Investors will likely assess the long-term revenue potential from these renewable assets against the upfront capital expenditures and ongoing operational costs. The solar sites' ability to attract customer subscriptions is key, as it directly affects revenue projections. The mention of seeking final approval from the Public Service Commission suggests regulatory hurdles that could influence project timelines and financial outcomes.

The stock market typically reacts to such developments with a focus on future earnings potential and cost savings from renewable energy sources. However, the market will also be vigilant about the execution risks associated with construction and regulatory compliance. The strategic shift towards renewables may be viewed favorably if it aligns with investor sentiment on sustainability and environmental, social and governance (ESG) criteria.

It is important to monitor FirstEnergy's quarterly financials following the solar sites' completion to evaluate the return on investment and the impact on the company's overall profitability and market valuation.

Environmental Economist

The construction of the Rivesville solar site by FirstEnergy is a pertinent example of how environmental and economic objectives can converge. The site's projected capacity to power a significant number of homes with renewable energy illustrates the potential for job creation and economic stimulation in the short term, while contributing to emissions reduction in the long term.

The choice of a brownfield site for the solar installation is economically efficient, leveraging land that might otherwise remain unused. This approach can also reduce the opportunity cost typically associated with greenfield developments. The environmental benefits extend beyond clean energy production, potentially improving local land values and contributing to community revitalization.

However, the transition to renewable energy can have complex economic implications, including the potential for stranded assets in the fossil fuel sector and the need for new investments in grid infrastructure to accommodate intermittent power sources like solar. The success of such projects in delivering economic benefits will depend on careful management of these transitions and the responsiveness of the market and regulatory frameworks.

Mon Power and Potomac Edison's Rivesville site stimulating economy in Marion County and beyond

FAIRMONT, W.Va., March 19, 2024 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) subsidiaries Mon Power and Potomac Edison have begun construction on their second utility-grade solar site in West Virginia to help meet the state's energy needs and further encourage economic growth.

Click here to view and/or download drone footage of the Rivesville site construction.

The Rivesville solar site in Marion County will be situated along Morgan Ridge Road on approximately 27 acres. Once installed, the solar panels there will produce up to 5.5 megawatts (MW) of renewable power. One MW of solar energy powers a national average of 173 homes, according to the Solar Energy Industries Association. The property, owned by the companies, is a brownfield site that has gone unused since the Rivesville Power Station was deactivated in 2012.

Jim Myers, President of FirstEnergy's West Virginia Operations: "We are proud to be transforming a former coal ash disposal site into a source of clean renewable energy for our customers. We believe the energy generated by our West Virginia solar sites will continue to encourage economic development in the state because a growing number of companies require a portion of the electricity they purchase to be generated by renewable sources."

The Rivesville solar site is the second of the companies' five planned solar sites in West Virginia. The companies' first solar site, which sits on 80 acres at the Fort Martin Power Station, was connected to the distribution grid in January 2024 and can produce up to 18.9 MW of solar energy per hour.

The Rivesville solar site is being constructed by local union workers, just like the Fort Martin site. In recent weeks, crews have prepared the Rivesville site by removing trees, constructing roads and installing fences ahead of upcoming electrical and mechanical work. The solar panels, racking systems and supporting electrical equipment for the site are made in the United States.

Ultimately, the companies' five sites are expected to collectively generate 50 megawatts of renewable energy. Construction of the Rivesville site and a third site in Berkeley County (5.7 MW), is expected to be completed by the end of 2024. The companies also plan to seek final approval from the Public Service Commission of West Virginia to build the additional two solar sites in Davis, Tucker County (11.5 MW), and Weirton, Hancock County (8.4 MW), once customers subscribe to the energy they will produce.

To subscribe or find out more about the solar program, Mon Power and Potomac Edison customers in West Virginia can submit their information through the website at firstenergycorp.com/WVSolar or by calling 1-800-505-7283.

Mon Power serves about 395,000 customers in 34 West Virginia counties. Follow Mon Power at mon-power.com, on X, formerly known as Twitter @MonPowerWV, and on Facebook at facebook.com/MonPowerWV.

Potomac Edison serves about 285,000 customers in seven counties in Maryland and 155,000 customers in the Eastern Panhandle of West Virginia. Follow Potomac Edison at potomacedison.com, on X @PotomacEdison, and on Facebook at facebook.com/PotomacEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

 

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SOURCE FirstEnergy Corp.

FAQ

What is the purpose of the construction at the Rivesville site by FirstEnergy Corp. (FE)?

FirstEnergy Corp.'s subsidiaries Mon Power and Potomac Edison are constructing the Rivesville solar site to produce renewable energy and drive economic development in West Virginia.

How much power will the solar panels at the Rivesville site generate?

The solar panels at the Rivesville site are expected to produce up to 5.5 megawatts (MW) of renewable power.

What is the significance of the Rivesville site being a brownfield location?

The Rivesville site being a brownfield location means that it is a previously unused area, in this case, a former coal ash disposal site, now being repurposed for clean renewable energy production.

How many solar sites does FirstEnergy Corp. plan to build in West Virginia?

FirstEnergy Corp. plans to build a total of five solar sites in West Virginia, with the Rivesville site being the second in the series.

When is the construction of the Rivesville site expected to be completed?

Construction of the Rivesville site and another site in Berkeley County is expected to be completed by the end of 2024.