Boston, MA 05/16/2014 (wallstreetpr) – Dominion Resources, Inc. (NYSE:D) acquired two solar energy developments (fixed-tilt photovoltaic) projects in southwest Tennessee, which are expecting to commercialize it operation by fourth quarter 2014.
Both the projects are now at last stage of their development and on completion, it will produce power of ~16 megawatts AC. Tennessee Valley Authority (TVA) will purchase the power from these projects as per their renewable standard offer program.
Advantage over solar projects
Dominion Resources, Inc. (NYSE:D) already has solar energy operating facilities in Indiana, Georgia and Connecticut. The acquisition of Tennessee projects expand its geographic footprints and increase the capacity to 41 megawatts of solar power.
The addition of these two projects will diversify the overall energy portfolio of Dominion from traditional sources to solar energy. So, together the power generating capacity of Dominion will be ~212 megawatts.
Dominion also expects an additional 139 megawatts from California that is under constructions. The additional projects as per Solar Partnership Program in Virginia will further increase its production capacity.
Expansion to address the demand
Dominion Resources, Inc. (NYSE:D) is currently focusing on expansion of its production capacity and transportation network to address the ongoing needs. Therefore, the Company is investing more capital on acquisitions of solar projects, and property additions for plant constructions. During first quarter 2014, the Company spent $1.1 billion as capital expenditures and $47 million for the acquisition of solar projects.
Dominion has a strong liquidity position to fund the ongoing expansion projects either through equity or debts. The Company has total long-term debt of $20 billion and shareholder’s equity of $12 billion as of March 31, 2014. The Company also has flexible short-term financing options with the cash balance of $228 million and short-term debt of ~$2 billion to meet the near-term needs.
Conclusion
Dominion Resources, Inc. (NYSE:D) has a leading position in production and distribution of energy including renewable resources across 10 states in the U.S. It becomes a competitive advantage to gain long-term energy contracts.
