NextEra Energy Resources and Entergy have signed a 4.5 GW solar and storage development agreement

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Brief description of the dive:

• The companies announced Friday that NextEra Energy Resources and Entergy have signed an agreement to jointly develop up to 4.5 GW of solar and energy storage facilities over the next five years.

• While details of the projects have not yet been announced, the deal focuses on projects that Entergy could build on its own or acquire and own, according to a company spokesman.

• According to Entergy, the agreement will enable Entergy to access NextEra Energy’s supply chain and leverage its development expertise to expand Entergy’s renewable energy portfolio.

Diving Insights:

Entergy intends to partner with NextEra Energy to further accelerate the growth of its renewable energy portfolio less than a month after the company announced plans for a 3-GW expansion in Louisiana.

The partners are open to building in any of Entergy’s four states – Arkansas, Louisiana, Mississippi and Texas – Rob West, president of Entergy’s utility operations group, said in a statement. Exact locations have not yet been announced, and an Entergy spokesman said it was “premature” to discuss specific projects “or speculate on projects in which the parties may engage.”

Together with the accelerated review process for new renewable energy projects in Louisiana approved last month, the deal will help Entergy accelerate its development of renewable energy development areas, a spokesman said.

The spokesperson said the expedited review process and related 3 GW expansion planned in Louisiana, as well as the 4.5 GW partnership with NextEra Energy Resources, were driven by growing demand for clean energy across Entergy’s service area. The joint agreement does not prevent Entergy from also entering into power purchase agreements with NextEra Energy, as it has done in the past, a spokesman said.

“We believe that the power sector is at a turning point and the growing demand for electricity will be met by low-cost renewable energy generation and storage. We are pleased to have reached this agreement as it further strengthens our long-standing partnership and contributes 4.5 GW in addition to the more than 1.7 GW of renewable energy projects already underway by Entergy,” Rebecca Kujawa, president and CEO of NextEra, said in a statement Energy Resources.

NextEra expects Entergy will need up to 6.2 GW by 2029 to meet growing demand, according to a June 11 investor presentation based on filed integrated resource plan documents.

According to its annual report filed in February with the U.S. Securities and Exchange Commission, Entergy had 23,879 MW at the end of last year, including 229 MW of solar energy. It also has various power purchase agreements with renewable energy companies.