NextEra Energy (NEE) began as Florida Light & Power in 1925. Since then, the corporation has grown to become one of the country’s top utilities, particularly in Florida. The company is now at the forefront of the renewable energy infrastructure. The firm works on large projects for government agencies and multinational corporations. NextEra has the beginnings of a renewable energy behemoth.
Supply Chain, Nuclear Generation, Engineering and Construction, and Renewable Energy Generation are the company’s four segments. NextEra Energy, a $139 billion conglomerate, is made up of all of these components. The corporation is the country’s largest vertically operated utility, which will come into play later when discussing contract applications.
This company’s heart and soul are renewable energy. Margins will grow as the cost of renewable energy falls, and earnings will rise. This will boost earnings per share (EPS) and reward shareholders. This effect could occur as early as 2023 when renewable energy is going to have been widely available. In the United States, NextEra Energy has a huge opportunity, and the industry is theirs to lose.
Renewable Energy Has a Bright Future
Global renewable energy estimates are very positive for NextEra Energy’s company. Large corporations are attempting to reduce their carbon footprint in a variety of ways, from commercial to industrial. As more businesses commit to carbon-neutral or zero-emission goals, renewable energy infrastructure will be required to help them accomplish their objectives. That’s where NextEra energy steps in to assist these businesses in achieving their objectives.
Solar is the fuel source with the highest expected growth rate in terms of dollars per MWh. This is positive because, as solar panel components become more affordable, NextEra Energy’s profit margins will only grow due to decreasing service costs. Regardless of how much natural gas is used to generate energy in the United States, NextEra Energy is going to be able to expand their lead.
By attempting to be the epicenter of the renewable energy electricity generation, the corporation is being astute. This will make the business very attractive in states where green energy objectives are a priority. NextEra Energy, for example, recently submitted proposals for the offshore wind transmission to the grid operators in New York and New Jersey. This would only help the states achieve their carbon-neutral 2030 targets and move the country closer to meeting its entire climate goals.
In the United States, NextEra Energy has a significant opportunity. The electric sector’s complete decarbonization will be a big windfall to the stock. There is why the company wouldn’t receive the contract because they’re the country’s biggest vertically integrated electric utility, not to mention the one with the most renewable energy technologies. This demand will undoubtedly outpace supply, but not until NextEra Energy has taken its rightful share of the market.