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Released November 26, 2019 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) plans to make capital investments of between $50 billion and $55 billion across its businesses from 2019 through 2022, or between $12 billion and $14 billion per year over that four-year period, company executives told attendees at the Edison Electric Institute (EEI) (Washington, D.C.) financial conference earlier this month. Industrial Info is tracking 248 active NextEra projects across North America that are valued at about $33 billion.
Slightly more than half of those planned outlays will go to NextEra's two Florida electric utilities--Florida Power & Light (FPL) (Juno Beach, Florida) and Gulf Power (Pensacola, Florida), which was acquired from Southern Company (NYSE:SO) (Atlanta, Georgia) in a transaction that closed January 1, 2019. NextEra will invest $23 billion to $25 billion in FPL over the four-year timeframe. Investments in Gulf Power will total $2.9 billion to $3.3 billion, NextEra officials told attendees at the EEI conference.
Click on the image at right to see a functional breakdown of FPL's planned capital spending over the 2019-2022 period.
Hurricanes are a fact of life in Florida, and NextEra plans to continue to invest heavily in "hardening" the transmission and distribution (T&D) systems of its Florida utilities.
Between $3 billion and $4 billion will be invested to harden FPL's T&D system against storms. From 2019 through 2022, Gulf Power is expected to spend $100 million to $200 million to harden its T&D system. Both utilities also plan hefty non-hardening outlays for their T&D systems: FPL's spending will be $7 billion to $8 billion over four years, while Gulf Power will make $650 million to $800 million of non-hardening investments in its T&D system over that same timeframe, NextEra executives told EEI conference attendees.
FPL has built several large natural gas-fired, combined-cycle (NGCC) generation plants in recent years, but that building cycle will give way to renewable energy over the next four years. The roughly $900 million that FPL is spending to build the gas-fired, 1,200-megawatt (MW) Dania Beach Clean Energy Center will be outstripped by the roughly $2.6 billion of outlays the utility plans to build solar generation and battery energy storage systems (BESS) in its service area over the next four years. Another $300 million will be invested by Gulf Power to build solar generation in its service area.
About $5.2 billion, or roughly 10% of NextEra Energy's four-year capital-spending program, will be spent in the state of Florida, mostly for its regulated electric utilities. NextEra Energy also does a lot of business outside Florida, chiefly as a merchant power developer through its NextEra Energy Resources unit. North Dakota, New York, Oklahoma, Iowa, Texas and Kansas are some of the states where NextEra plans to make more than $1 billion of investments over the next four years, according to Industrial Info's Global Marketing Intelligence (GMI) Database Platform. Most of those investments will be for renewable generation. NextEra Energy operates in 37 states and provinces across North America.
Click on the image at right to see the top 10 states where NextEra Energy plans to make capital investments over the 2019-2022 timeframe.
In announcing NextEra Energy's third-quarter financial results on October 22, Jim Robo, chairman and chief executive, made this comment: "NextEra Energy Resources continues to capitalize on one of the best environments for renewables development in our history, with our backlog increasing by approximately 1,375 megawatts." That renewable energy backlog totals more than 12,300 MW.
About $12.8 billion, or approximately 39%, of NextEra Energy's $33 billion in planned capital spending is in the preliminary planning stage, according to Industrial Info's GMI platform, while another $12.7 billion is in the advanced planning stage. Slightly more than $4 billion is being engineered, while just more than $3 billion is in the construction stage.
Click on the image at right to see a phase-by-phase breakdown for NextEra Energy's planned capital outlays.
Measured by fuel type, roughly $25 billion will be going to renewable generation across NextEra Energy's geographic footprint from 2019 through 2022. Natural gas will see about $1.6 billion of investment over that four-year horizon.
Click on the image at right to see a breakdown by fuel of NextEra Energy's planned generation outlays over the 2019-2022 period.
One reason driving NextEra Energy's heavy investment in renewables and energy storage is its expectation that costs will continue to come down so that those types of generation will be competitive with natural gas, coal and nuclear generation after 2023.
Click on the image at right to see projected megawatt-hour costs for different types of generation after 2023.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Slightly more than half of those planned outlays will go to NextEra's two Florida electric utilities--Florida Power & Light (FPL) (Juno Beach, Florida) and Gulf Power (Pensacola, Florida), which was acquired from Southern Company (NYSE:SO) (Atlanta, Georgia) in a transaction that closed January 1, 2019. NextEra will invest $23 billion to $25 billion in FPL over the four-year timeframe. Investments in Gulf Power will total $2.9 billion to $3.3 billion, NextEra officials told attendees at the EEI conference.
Click on the image at right to see a functional breakdown of FPL's planned capital spending over the 2019-2022 period.Hurricanes are a fact of life in Florida, and NextEra plans to continue to invest heavily in "hardening" the transmission and distribution (T&D) systems of its Florida utilities.
Between $3 billion and $4 billion will be invested to harden FPL's T&D system against storms. From 2019 through 2022, Gulf Power is expected to spend $100 million to $200 million to harden its T&D system. Both utilities also plan hefty non-hardening outlays for their T&D systems: FPL's spending will be $7 billion to $8 billion over four years, while Gulf Power will make $650 million to $800 million of non-hardening investments in its T&D system over that same timeframe, NextEra executives told EEI conference attendees.
FPL has built several large natural gas-fired, combined-cycle (NGCC) generation plants in recent years, but that building cycle will give way to renewable energy over the next four years. The roughly $900 million that FPL is spending to build the gas-fired, 1,200-megawatt (MW) Dania Beach Clean Energy Center will be outstripped by the roughly $2.6 billion of outlays the utility plans to build solar generation and battery energy storage systems (BESS) in its service area over the next four years. Another $300 million will be invested by Gulf Power to build solar generation in its service area.
About $5.2 billion, or roughly 10% of NextEra Energy's four-year capital-spending program, will be spent in the state of Florida, mostly for its regulated electric utilities. NextEra Energy also does a lot of business outside Florida, chiefly as a merchant power developer through its NextEra Energy Resources unit. North Dakota, New York, Oklahoma, Iowa, Texas and Kansas are some of the states where NextEra plans to make more than $1 billion of investments over the next four years, according to Industrial Info's Global Marketing Intelligence (GMI) Database Platform. Most of those investments will be for renewable generation. NextEra Energy operates in 37 states and provinces across North America.
Click on the image at right to see the top 10 states where NextEra Energy plans to make capital investments over the 2019-2022 timeframe.In announcing NextEra Energy's third-quarter financial results on October 22, Jim Robo, chairman and chief executive, made this comment: "NextEra Energy Resources continues to capitalize on one of the best environments for renewables development in our history, with our backlog increasing by approximately 1,375 megawatts." That renewable energy backlog totals more than 12,300 MW.
About $12.8 billion, or approximately 39%, of NextEra Energy's $33 billion in planned capital spending is in the preliminary planning stage, according to Industrial Info's GMI platform, while another $12.7 billion is in the advanced planning stage. Slightly more than $4 billion is being engineered, while just more than $3 billion is in the construction stage.
Click on the image at right to see a phase-by-phase breakdown for NextEra Energy's planned capital outlays.Measured by fuel type, roughly $25 billion will be going to renewable generation across NextEra Energy's geographic footprint from 2019 through 2022. Natural gas will see about $1.6 billion of investment over that four-year horizon.
Click on the image at right to see a breakdown by fuel of NextEra Energy's planned generation outlays over the 2019-2022 period.One reason driving NextEra Energy's heavy investment in renewables and energy storage is its expectation that costs will continue to come down so that those types of generation will be competitive with natural gas, coal and nuclear generation after 2023.
Click on the image at right to see projected megawatt-hour costs for different types of generation after 2023.Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
