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Released February 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Clearway Energy Incorporated (NYSE:CWEN) (Princeton, New Jersey) is swapping out an unprofitable business for something more promising. The renewable-solutions provider dropped its thermal business last year, and it is preparing to use the profits to finish construction on a string of highly anticipated solar and battery energy-storage systems (BESS) projects. Industrial Info is tracking more than $8 billion worth of active projects involving Clearway's services, more than $2.1 billion of which are under construction.
Clearway's development pipeline stands at nearly 28 gigawatts (GW) worth of projects. Its total capacity under construction stands at roughly 2 GW, with an additional 900-plus megawatts (MW) expected to commence construction in the next six months, according to a presentation from company executives, as part of a quarterly earnings-related conference call.
Two of the largest projects under construction involving Clearway are the Victory Pass and Arica solar and BESS projects in Riverside, California, which are expected to generate 200 and 265 MW, respectively, from single-axis photovoltaic (PV) tracking panels. The projects, which began construction last spring and are set to wrap up in the fourth quarter, include energy-storage systems that utilize lithium-ion battery storage containers.
Toward the end of 2022, Clearway agreed to acquire interest in an existing partnership that oversees the Victory Pass and Arica projects. Upon the closing of the transaction, expected in the second half of 2023, Clearway will own 40% of the partnership. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Victory Pass solar and BESS projects, and the Arica solar and BESS projects.
Chris Sotos, the chief executive officer of Clearway, said the Victory Pass and Arica projects will expand the company's storage base, "which in this case is backed by a diverse set of four 15-year contracts with leading load-serving entities in California, and [they] will add to a growing portfolio of battery resources that will be operating in California, providing critical and complementary resources in a system where they're greatly valued."
Sotos added: "The projects exhibit a very desirable commercial profile for us. They will serve a diversified set of high-quality customers, with contracts that, on a weighted average basis, have a contract duration of approximately 14 years. They will be operating in a home market where we have great operational strength."
Executives noted in the earnings call that near-term developments related to Victory Pass and Arica will use about one-third of the excess capital Clearway received from the May 2022 sale of its thermal business. "The closing of the thermal sale has provided unprecedented financial flexibility to execute upon our long-term growth objectives, given the $750 million of excess proceeds," the company said in a quarterly earnings-related press release.
For full-year 2022, Clearway reported net income of $1.06 billion, compared with a $75 million loss in full-year 2021. The company's 2022 results were aided significantly by the $1.3 billion of corporate-level capital netted from the sale of its thermal business.
Last week, Clearway, through a partnership with a third-party investor, acquired the indirect owner of the third phase of the Daggett Solar Power and BESS project in San Bernardino County, California. The massive Daggett project is divided into three phases, which are expected to generate 156 MW, 197.6 MW and 324.48 MW, respectively, upon completion. The BESS systems are designed to have capacities of 72 MW, 96 MW and 150 MW, respectively.
According to Clearway, Daggett III has power-purchase agreements (PPAs) in place with investment-grade counterparties that have a 15-year weighted average contract duration. The contracts will go into effect when the full Daggett project begins commercial operations, which is expected in the first half of 2023. As with the first two phases of the project, Daggett III's customers include Clean Power Alliance (Los Angeles, California), East Bay Community Energy (Oakland, California), Constellation Energy Corporation (Baltimore, Maryland), MCE Clean Energy (San Rafael, California) and Pacific Gas & Electric Company, a unit of PGE Corporation (NYSE:PCG) (San Francisco, California).
Subscribers can read detailed reports on the Phase I solar and BESS projects, the Phase II solar and BESS projects, and Phase III solar and BESS projects.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Clearway.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Clearway's development pipeline stands at nearly 28 gigawatts (GW) worth of projects. Its total capacity under construction stands at roughly 2 GW, with an additional 900-plus megawatts (MW) expected to commence construction in the next six months, according to a presentation from company executives, as part of a quarterly earnings-related conference call.
Two of the largest projects under construction involving Clearway are the Victory Pass and Arica solar and BESS projects in Riverside, California, which are expected to generate 200 and 265 MW, respectively, from single-axis photovoltaic (PV) tracking panels. The projects, which began construction last spring and are set to wrap up in the fourth quarter, include energy-storage systems that utilize lithium-ion battery storage containers.
Toward the end of 2022, Clearway agreed to acquire interest in an existing partnership that oversees the Victory Pass and Arica projects. Upon the closing of the transaction, expected in the second half of 2023, Clearway will own 40% of the partnership. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Victory Pass solar and BESS projects, and the Arica solar and BESS projects.
Chris Sotos, the chief executive officer of Clearway, said the Victory Pass and Arica projects will expand the company's storage base, "which in this case is backed by a diverse set of four 15-year contracts with leading load-serving entities in California, and [they] will add to a growing portfolio of battery resources that will be operating in California, providing critical and complementary resources in a system where they're greatly valued."
Sotos added: "The projects exhibit a very desirable commercial profile for us. They will serve a diversified set of high-quality customers, with contracts that, on a weighted average basis, have a contract duration of approximately 14 years. They will be operating in a home market where we have great operational strength."
Executives noted in the earnings call that near-term developments related to Victory Pass and Arica will use about one-third of the excess capital Clearway received from the May 2022 sale of its thermal business. "The closing of the thermal sale has provided unprecedented financial flexibility to execute upon our long-term growth objectives, given the $750 million of excess proceeds," the company said in a quarterly earnings-related press release.
For full-year 2022, Clearway reported net income of $1.06 billion, compared with a $75 million loss in full-year 2021. The company's 2022 results were aided significantly by the $1.3 billion of corporate-level capital netted from the sale of its thermal business.
Last week, Clearway, through a partnership with a third-party investor, acquired the indirect owner of the third phase of the Daggett Solar Power and BESS project in San Bernardino County, California. The massive Daggett project is divided into three phases, which are expected to generate 156 MW, 197.6 MW and 324.48 MW, respectively, upon completion. The BESS systems are designed to have capacities of 72 MW, 96 MW and 150 MW, respectively.
According to Clearway, Daggett III has power-purchase agreements (PPAs) in place with investment-grade counterparties that have a 15-year weighted average contract duration. The contracts will go into effect when the full Daggett project begins commercial operations, which is expected in the first half of 2023. As with the first two phases of the project, Daggett III's customers include Clean Power Alliance (Los Angeles, California), East Bay Community Energy (Oakland, California), Constellation Energy Corporation (Baltimore, Maryland), MCE Clean Energy (San Rafael, California) and Pacific Gas & Electric Company, a unit of PGE Corporation (NYSE:PCG) (San Francisco, California).
Subscribers can read detailed reports on the Phase I solar and BESS projects, the Phase II solar and BESS projects, and Phase III solar and BESS projects.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Clearway.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
