NRG Energy Inc (NYSE:NRG) announced revision of its carbon emissions reduction target. The company now aims to achieve 50% reduction in emissions by 2025 and net-zero by 2050, from 2014 levels. Previously, the company targeted to achieve 50% by 2030 and 90% by 2050. Considering the Intergovernmental Panel on Climate Change (IPCC) guidance of limiting global warming to a 1.5° celsius increase, the company revised the targets.
Notably, the company has already achieved 37% reduction in GHG emissions from 2014 level. In 2015, it became the first power sector company that earned the endorsement of the Science Based Targets initiative for setting GHG emissions goals that limits global warming to 2° celsius.
Initiatives for Clean Power Generation
The company serves more than 3.7 million residential, small business as well as commercial and industrial customers. It is focused on providing customers with clean and reliable service. NRG Energy is trying to reduce its dependency on coal for power generation. The company’s global generation portfolio shows that generation from coal is gradually decreasing. In 2016, contribution of coal in total generation was 13,184 megawatt (MW) that declined to 7,919 MW in 2018.
Focus on Lowering Emission
Per Energy Information Administration (EIA), energy-related carbon emission in the United States is expected to decline 2.5% in 2019 and another 1.0% in 2020. Electric utility companies have increased their focus toward cleaner power generation and lower carbon-emission volumes.
Other utility companies who have fixed carbon-emission reduction target from their respective production portfolio by lowering coal usage are Xcel Energy Inc (NASDAQ:XEL) , FirstEnergy Corporation (NYSE:FE) and Dominion Energy, Inc (NYSE:D) . Xcel Energy announced a target of 80% carbon reduction by 2030 from 2005 level. FirstEnergy aims to reduce 90% emissions from generation fleet by 2045 from 2005 levels. Dominion Energy aims to cut down carbon emissions from power generation by 55% in 2030 and further by 80% in 2050 from 2005 levels.
Zacks Rank & Price Performance
NRG Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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