Georgia Power Unveils Future Energy Strategy in 2025 Plan
The Southern Company’s SO Georgia Power unit recently submitted its 2025 Integrated Resource Plan (IRP) to the Public Service Commission, outlining its approach to meet Georgia’s increasing energy needs. The IRP, driven by the state’s strong economic growth, emphasizes investments in generation, transmission, and customer programs to enhance reliability and resilience.
As Georgia attracts new businesses and experiences economic growth, electricity demand has risen. By 2030, Georgia Power anticipates an additional load of around 2,200 MW.
SO is Committed to a Diverse and Sustainable Energy Future
To ensure long-term sustainability, Georgia Power is diversifying its energy sources. Major proposals in the 2025 IRP include:
Increasing Clean Energy Capacity: Southern Company aims to upgrade its Plants Hatch and Vogtle, contributing 112 MW of carbon-free energy. With the completion of Vogtle Units 3 & 4, Southern Company has become the leading clean energy generator in the nation.
Upgrading Natural Gas and Coal Units: The 2025 IRP proposes expanding cleaner natural gas use and increasing Plant McIntosh’s capacity near Savannah by 268 MW. The plan also suggests extending operations at coal and natural gas units until 2034, with significant upgrades across multiple facilities. Notably, Plants Bowen and Scherer, producing 4,000 MW, have significantly reduced emissions by over 95% in recent decades through advanced technology.
Modernization of Hydroelectric Facilities: The company will modernize nine hydroelectric plants, replacing and refurbishing turbines, generators, and other equipment, ensuring operations for at least another 40 years.
Boosting Renewable Energy: Southern Company’s long-term strategy aims to acquire 4,000 MW of renewable energy by 2035, with 1,100 MW included in the current IRP. This will raise the company’s total renewable energy capacity to approximately 11,000 MW by 2035.
Investment in Battery Energy Storage: The plan also includes adding over 1,500 MW of battery energy storage to enhance energy management in the coming years.
Enhancing SO’s Power Grid and Transmission Network
The 2025 IRP aims to strengthen the power grid, ensuring dependable energy delivery to Georgians with minimal interruptions. A robust transmission system is vital for efficiency. Southern Company’s 10-year transmission strategy includes upgrades spanning over 1,000 miles of transmission lines.
Customer-Focused Energy Solutions
In response to changing customer needs, Southern Company is broadening demand-side programs, including options for solar plus storage and renewable energy initiatives as part of its energy efficiency efforts.
SO’s Market Position and Recommendations
Southern Company, based in Atlanta, GA, is among the largest utilities in the U.S., engaged in the generation, transmission, and distribution of electricity. Currently, SO holds a Zacks Rank #3 (Hold).
For investors interested in the utility sector, there are better-ranked options such as CMS Energy Corporation CMS, PG&E Corporation PCG, and CenterPoint Energy, Inc. CNP, all carrying a Zacks Rank #2 (Buy).
CMS Energy Corporation is the parent of Consumers, an electric and gas utility, and NorthStar Clean Energy, an independent power producer. Analysts expect CMS to achieve a 7.07% year-over-year earnings growth in 2024.
PG&E Corporation serves as the parent company of Pacific Gas and Electric. Revenue is generated mainly through electricity and natural gas sales. Projections for PCG’s 2024 earnings reflect an anticipated growth of 10.57% year-over-year.
CenterPoint Energy, based in Houston, TX, provides electric transmission, distribution, and natural gas operations to over 7 million customers. The company forecasts an 8% year-over-year growth in 2024 earnings.
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