Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

TransAlta (TAC) Unfolds Renewable Plans, Hikes 2022 Dividend

By Zacks Investment ResearchStock MarketsSep 29, 2021 01:59AM ET
www.investing.com/analysis/transalta-tac-unfolds-renewable-plans-hikes-2022-dividend-200603474
TransAlta (TAC) Unfolds Renewable Plans, Hikes 2022 Dividend
By Zacks Investment Research   |  Sep 29, 2021 01:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

TransAlta (NYSE:TAC) Corporation TAC announces its strategic growth plans that will position it as a leader in delivering clean electricity. It aims to add 2 Gigawatt (GW) of capacity to its portfolio by developing, constructing and acquiring assets via investments worth $3 billion by the end of 2025.

The company has a customer-centered renewable electricity and storage plan in place. It aims to expand its storage by enhancing its 3 GW development pipeline and further increasing it to 5 GW by 2025 to double the renewable fleet within 2030. Currently, it has a development pipeline of 1.2 GW in the United States, nearly 2 GW in Canada and 270 megawatt (MW) in Australia.

It announced building new projects and undertaking buyouts worth 300 MW capacities and has 500 MW of electricity in advanced-stage development. Also, the utility’s already announced acquisition of solar projects with 122- MW capacity in North Carolina, expected to close in mid-October, will be another significant addition to its renewable portfolio.

Zero-Carbon Emission Goal

A clear transition is evident in the utility space with the operating participants making changes to their generation portfolio to cut down on emission. The focus is on using more clean renewable sources and trimming the usage of coal to generate electricity.

TransAlta is also undertaking necessary steps to retire the old generating power units and restructure its portfolio. After proper evaluation, it determined that increasing costs, regulatory risks, changes in supply and demand along with power price forecasts in the Alberta market make the Sundance Unit 5 repowering project unsuitable. Hence, it decided to suspend its operations, and use its capital to fund other renewable projects.

Based on the future market conditions, the company’s focus on renewable energy solutions and the age of the facilities, the utility will retire the Keephills Unit 1 on Dec 31, 2021 and the Sundance Unit 4 effective Apr 1, 2022. Besides, it provided a retirement notice to the Alberta Electric System Operator. Its efforts include ceasing all coal-fired generation in Canada by the end of the current year and across its entire fleet by the late 2025.

TransAlta aims to reduce emissions by 70% within 2030 from its 2005 base levels and reach full carbon-neutrality by 2050. Other utilities that already decided to curb 100% carbon emissions by 2050 from their operations include Alliant Energy (NASDAQ:LNT) LNT, Exelon Corporation (NASDAQ:EXC) EXC and FirstEnergy Corp. FE.

Dividend Update

The utility also raised its dividends by 11% to reach an annual tally of 20 cents per share, marking the third dividend hike in the past two years. The new quarterly dividend of 5 cents per share is payable Jan 1, 2022 to its shareholders of record on Dec 1, 2021.

Price Performance

Shares of this utility have gained 10.1% in the past six months against the industry’s decline of 2.1%.

Six Months Price Performance

Zacks Investment Research
Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>

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

Exelon Corporation (EXC): Free Stock Analysis Report

FirstEnergy Corporation (NYSE:FE): Free Stock Analysis Report

Alliant Energy Corporation (LNT): Free Stock Analysis Report

TransAlta Corporation (TAC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
TransAlta (TAC) Unfolds Renewable Plans, Hikes 2022 Dividend
 

Related Articles

TransAlta (TAC) Unfolds Renewable Plans, Hikes 2022 Dividend

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email