CMS Energy's (CMS) Subsidiary Buys 24 MW Delta Solar Project
Zacks Investment Research | Oct 03, 2017 10:50PM ET
CMS Energy Corporation’s (NYSE:CMS) subsidiary, CMS Enterprises, is set to buy Delta Solar, a 24-megawatt (MW) solar power project that comprises two phases. The project will offer sufficient energy to the Lansing Board of Water & Light to power 3,300 homes through a power purchase agreement.
Details of the Project
Located on about 190 acres in Delta Township in Eaton County next to the General Motors Co.’s (NYSE:GM) Lansing Delta Assembly Plant, the Delta Solar project is currently under construction by Vermont-based groSolar, a subsidiary of EDF (PA:EDF) Renewable Energy. This latest project will become operational by the summer of 2018, which in turn will help the Lansing Board of Water & Light to attain its renewable energy goals.
Once its work gets completed in 2018, Delta Solar will become Michigan’s second-largest solar power plant and is expected to create about 150 construction jobs.
It represents CMS Energy's capability to help meet Michigan's need for new renewable energy sources as the state continues to grow.
Other Renewable Projects of CMS Energy
At present, CMS Energy has two solar power plants in Michigan, at Western Michigan University and Grand Valley State University. Also, it owns the Flambeau Solar plant in Wisconsin.
Notably, the company's renewable energy commitment consists of wind farms in the Thumb and near Lake Michigan, besides the three biomass facilities in Michigan and North Carolina.
Moreover, in order to meet the requirements of the renewable energy plan, the company signed a 15-year agreement in 2015 to purchase renewable capacity, energy, and RECs from a 100-MW wind park to be constructed in Huron County, MI. The wind park is expected to be online by 2017-end.
Our View
With the increasing demand for renewable energy resources, companies are adopting clean energy procurement as a strategic business decision to support their growth and business bottom line. In this line, CMS Energy has also increased its focus on clean power generation, apart from infrastructural upgrade, reliability improvement and capacity maximization. With renewable assets as the ultimate energy resources for our future, surely the Delta Solar project will prove to be beneficial for the company in the long run.
Moreover, groSolar has 20 years of leading solar development, engineering and construction experience. In fact, earlier in 2017 CMS Enterprises and groSolar had worked jointly to develop the 2.5-megawatt Flambeau Solar power plant in northern Wisconsin, the largest solar project in that state. We believe the latest project in Michigan will further strengthen the partnership between these two companies and once the power plant is completed, it will increase CMS Energy’s customer base.
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