Latest news with #ConstellationEnergy
Reuters
a day ago
- Business
- Reuters
Biggest US power grid auction prices rise by 22% to new heights
July 22 (Reuters) - Prices out of the biggest U.S. power auction, held by grid operator PJM Interconnection, cleared at $329.17 a megawatt-day, roughly 22% higher than last year's record-high levels as electricity demand continues to outstrip supply, according to results released by the organization on Tuesday. A recent surge in U.S. power consumption driven by Big Tech's data center demand has butted up against roughly a decade of shrinking power supplies in PJM, North America's largest power grid operator, leading to a supply shortfall that has driven up prices in the capacity auction. PJM's capacity auction determines what power plant owners in the grid network, which covers one in five Americans, will be paid to guarantee that they pump out electricity during times of extreme demand to help avoid blackouts. Shares of major power-producing companies that receive capacity payments rose on the auction results. Talen Energy shares were up over 9%, Constellation Energy shares rose over 5%, and NRG Energy (NRG.N), opens new tab climbed over 6% in trading after the bell. The payments are a sign of the energy supply and demand balance in PJM, with higher prices typically acting as an incentive for developers to build more power plants. PJM's territory covers 13 states and the District of Columbia, as well as the biggest concentration of data centers in the world, including Virginia's "Data Center Alley." The latest auction, which covers the year beginning next summer, is showing signs of a continued supply crunch. PJM attracted 2,669 megawatts of additional power supplies, which will be added through upgrading existing power plants and adding new ones, marking the first time in the last four auctions that new generation was added. The additions, however, represent only about half the amount of new power demand PJM expects to see over the period the auction covers. While prices overall increased from last year, two zones within PJM - covered by Baltimore Gas and Electric Company and Dominion Energy (D.N), opens new tab - saw price decreases. "Rapid electricity demand growth continues to outpace the rate of new generation," Evercore ISI analyst Nicholas Amicucci said in a note of the higher prices. Year-ago auction prices shot up by more than 800%, rising to $269.92 per megawatt-day from the previous year as data center demand crept up. Prices from that auction began to take effect last month, while the most recent results will impact bills beginning next summer. Those high payment prices, which are ultimately paid for by the public, drew a backlash from state consumer advocates, politicians and environmental groups, leading to several changes at PJM. PJM says it expects power bills for homes and businesses will rise only 1.5% to 5% year-over-year as a result of the latest auction results. Prices in BGE and Dominion may decline, it said. The types of power-generating capacity cleared through the auction included 45% natural gas, 21% nuclear, 22% coal, 4% hydro, 3% wind and 1% solar. Environmental groups, which successfully sued over the last PJM capacity results, said PJM has failed to quickly connect new carbon-free renewable power like wind and solar. 'PJM has failed our communities through its refusal to adopt substantive reforms, completely at odds with its mission of providing reliable energy at the lowest cost to its customers,' said Jessi Eidbo, Sierra Club senior adviser. PJM said it has approved the connection of 46,000 MW of power plants, many of them solar, but those projects have not yet been built for reasons outside the grid operator's control.
Reuters
a day ago
- Business
- Reuters
Prices jump 22% in biggest US power grid energy auction
July 22 (Reuters) - Prices out of an annual energy auction held by PJM Interconnection, the largest grid operator in the U.S., cleared at $329.17 a megawatt-day, 22% higher than last year's record-high levels, according to results released by the organization on Tuesday. A recent surge in U.S. power consumption driven by Big Tech's data center demand has butted up against roughly a decade of shrinking power supplies in PJM, leading to a supply shortfall that has driven prices in the capacity auction to new heights. PJM's so-called capacity auction determines what power plant owners in the grid network that covers one in five Americans will be paid to guarantee that they pump out electricity during times of extreme demand, which typically happen on the hottest or coldest days of the year. Shares of major power-producing companies in PJM rose on the auction result news. Talen Energy shares up over 9%, Constellation Energy up over 5% and NRG Energy up over 6% in trading after the bell. The payments are a sign of the energy supply and demand balance on the grid, which spans 13 states and the District of Columbia, with higher prices typically acting as an incentive for developers to build more power plants. PJM's territory covers the biggest concentration of the world's energy-intensive data centers in Northern Virginia's "Data Center Alley" and other fledgling hubs that require massive amounts of electricity faster than power plants are connecting to the grid. Year-ago auction prices shot up by more than ninefold, rising to $269.92 per megawatt-day from the previous year as data center demand crept up. Those high payment prices, which are ultimately paid for by the public, drew a backlash from state consumer advocates, politicians and environmental groups, leading to several changes at PJM. The capacity cleared through the auction was 45% natural gas-fired power, 21% nuclear, 22% coal, 4% hydro, 3% wind and 1% solar.
Globe and Mail
7 days ago
- Business
- Globe and Mail
How Is Constellation Energy Advancing the Clean Energy Shift?
Constellation Energy Corporation CEG is benefiting from renewable energy options in several ways, primarily by expanding its portfolio of clean energy sources, attracting environmentally conscious customers and enhancing its reputation as a leader in the transition to a carbon-free future. While CEG is a major player in the nuclear energy sector, it is also expanding its presence in renewable energy markets. This diversification helps it remain competitive and resilient in a changing energy landscape. CEG is developing new offerings that allow smaller businesses to participate in renewable energy projects, overcoming barriers like minimum energy commitments and high credit standards. Constellation Energy offers various renewable energy solutions like offsite renewables (CORe), on-site solar projects and emission-free energy certificates (EFECs). CORe allows businesses to purchase power from offsite renewable energy projects, like wind and solar farms. It also provides on-site solar solutions, which can help businesses manage energy costs and improve energy reliability. Constellation Energy's commitment to renewable energy aligns with the growing global focus on reducing carbon emissions and combating climate change. CEG is actively working to expand its portfolio of clean energy resources, including nuclear, hydro, wind and solar. Nearly 90% of CEG's annual energy output comes from carbon-free sources, and it has set a goal to produce 95% carbon-free electricity by 2030 and 100% by 2040. Other Utilities Focus on Renewable Operations Some other utility companies that are also focused on expanding their renewable operations have been discussed below: Dominion Energy 's D long-term objective is to add more battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years. NextEra Energy NEE expects to add 36.5-46.5 gigawatt (GW) of new renewables in the 2024-2027 period to the generation portfolio. As of the first quarter of 2025, it had nearly 3.2 GW of renewable projects in its existing backlog. The company's renewables backlog is now nearly 28 GW. CEG Stock's Earnings Estimates The Zacks Consensus Estimate for Constellation Energy's 2025 and 2026 EPS indicates an increase of 9% and 22%, respectively. Image Source: Zacks Investment Research CEG Stock Trading at a Premium CEG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 29.14X compared with the industry average of 20.89X. CEG Stock's Price Performance In the past three months, CEG's shares have risen 49.1% compared with the industry 's 28.1% growth. CEG's Zacks Rank CEG currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Constellation Energy Corporation (CEG): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report
Yomiuri Shimbun
7 days ago
- Business
- Yomiuri Shimbun
Nuclear Reactor at Three Mile Island Eyed for 2027 Restart; Constellation Energy Aims to Supply Power To Data Centers
WASHINGTON — A major U.S. electric power company intends to restart the Unit 1 reactor at the Three Mile Island nuclear power plant as early as in 2027, about a year before its initial timeline of 2028, The Yomiuri Shimbun has learned. As reasons for accelerating the restart, Constellation Energy Corp. said that progress was being made in training operators and preparing the backup power supply system. The Unit 1 reactor ceased operation in 2019, but Constellation Energy announced its plan in September 2024 to restart the reactor to supply power to data centers operated by Microsoft Corp. Data centers, which process information using AI, require a considerable amount of electric power. Constellation Energy submitted a request to the Nuclear Regulatory Commission to rename the Unit 1 facility as the 'Crane Clean Energy Center,' and it was approved by the commission in May. TMI's Unit 2 reactor, which sits near Unit 1, was the site of a severe nuclear accident in 1979 in which the reactor partially melted down. Constellation Energy is believed to be seeking to dispel the negative image from the accident.
Yahoo
16-07-2025
- Business
- Yahoo
What to Expect From Constellation Energy's Next Quarterly Earnings Report
Valued at a market cap of $99.7 billion, Constellation Energy Corporation (CEG) is a leading U.S. energy provider offering electricity, natural gas, and sustainable energy solutions. Operating through five regional segments, the company manages over 31,000 megawatts of generation capacity across nuclear, wind, solar, natural gas, and hydroelectric sources. The Baltimore, Maryland-based company is slated to announce its fiscal Q2 2025 earnings results on Tuesday, Aug. 5. Ahead of this event, analysts expect Constellation Energy to report adjusted earnings of $2.05 per share, a surge of over 22% from $1.68 per share in the year‑ago quarter. It has exceeded or met Wall Street's earnings expectations in the past four quarters. Dear Nvidia Stock Fans, Mark Your Calendars for July 16 How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Retirement Ready: 3 Dividend Stocks to Set and Forget Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts expect the nuclear power utility company to report adjusted EPS of $9.45, an increase of 9% from $8.67 in fiscal 2024. In addition, adjusted EPS is anticipated to grow over 22% year-over-year to $11.53 in fiscal 2026. Shares of Constellation Energy have jumped 49.4% over the past 52 weeks, exceeding the broader S&P 500 Index's ($SPX) 10.9% return and the Utilities Select Sector SPDR Fund's (XLU) 17.9% gain over the same period. Constellation Energy stock jumped 10.3% on May 6 after the company reported strong Q1 2025 results, with adjusted earnings of $2.14 per share matching the consensus estimate and rising 17.6% year-over-year. Revenue came in at $6.8 billion, beating expectations and growing 10.2% from the prior year. Investors were also encouraged by the announced acquisition of Calpine Corporation, which will enhance CEG's generation mix by combining clean, emissions-free assets with dispatchable natural gas capacity. Additionally, the PJM selection of the Crane Clean Energy Center and other projects will add over 1,150 megawatts of firm, emissions-free power, supporting future growth and reliability amid tightening grid reserves. Analysts' consensus view on Constellation Energy stock remains cautiously optimistic, with an overall "Moderate Buy" rating. Out of 16 analysts covering the stock, 10 recommend a "Strong Buy," one "Moderate Buy," and five "Holds." As of writing, the stock is trading below the average analyst price target of $324.87. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
