Yahoo Finance NRG Energy (NRG) Aims for EV Fleet by 2030, To Cut Emission
NRG Energy, Inc. NRG joins the EV100 initiative on COP26 Transport Day, which underlines its commitment to electrify 100% of its light-duty fleet by 2030. This move takes its green goal (announced in June), a step ahead. Over the long run, NRG aims to apply its expertise to assist customers toward their transition to electric vehicles (EV) from fossil fuel-based transport.
About EV100
EV100 is a global initiative bringing together companies committed to replace its owned and contracted fleets up to 7.5 tonne by electric vehicles along with installing charging infrastructure for employees and customers within 2030. This will create a low-carbon transport system for its member’s customers.
Efforts to Cut Emission
NRG is focusing on clean-energy generation to lower emissions. On Sep 24, 2019, it announced greenhouse gas reduction goals and under this plan, targets to achieve a 50% emission cut by 2025 and net-zero emissions within2050 from the 2014 baseline. NRG’s planned sale of 4.8 Gigawatt (GW) fossil assets is on track to be completed in the fourth quarter of 2021. Also, NRG announced the retirement of 1.6 GW or 55% of its PJM coal generation in 2022.
Opportunities in EV Space
Per the Edison Electric Institute, 18.7 million EVs will run on the U.S. roads by 2030, indicating 7% growth from the 2018 levels, and to realize this objective, 9.6 million charge ports will be required. Within the same time frame, annual sales of EVs are expected to exceed 3.5 million.
Majority of the charging ports will use electricity produced from clean sources, further lowering carbon emission. Many utilities decided to shift toward clean sources of energy and completely stop using fossil fuels to generate electricity, which increase emission.
To reap benefits from the expanding EV market opportunities, other utilities including FirstEnergy FE, Xcel Energy XEL and Duke Energy DUK are also making efforts to electrify their vehicle fleets. Their target to attain 100% carbon neutrality by 2050 is also on track. All these stocks carry a Zacks Rank#3 (Hold) at present.
Xcel has goals to power 1.5 million electric vehicles in its service territories by 2030. Also, Duke and FirstEnergy are aiming to reduce emissions from their fleet by electrifying all the light-duty vehicles within 2030.
Price Movement
In the past three months, shares of NRG have lost 18.8% compared with the industry’s fall of 0.7%.
Three Months Price Performance
Image Source: Zacks Investment Research
Zacks Rank
NRG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
