NextEra Energy said it could build up to 30GW of wind, solar and storage over the next four years as America’s largest renewable electricity generator positioned itself for massive growth amid decarbonisation of the US power system under President Joe Biden.

NextEra’s Energy Resources unit unveiled expectations to add between 12.2-17.3GW in 2023-24, which it labelled “by far the largest expected two-year development programme in our history” that reflects the company’s confidence in the prospects for renewables.

NextEra also raised its 2021-22 guidance to 10.5-12.7GW, representing a 50% uplift on previous forecasts.

The 30GW top end of its ambitions for the next four years would include 7.9GW of wind, 1.4GW of wind repowering, 14.4GW of solar and 6.3GW of energy storage. On 1 January, its renewables backlog stood at 13.5GW.

"We believe we are in a terrific position to be able to capture a signiuficant share of the market opportunities going forward in what we continue to believe is the best renewable development environment we have ever seen," NextEra Energy CEO Jim Robo told analysts.

The company – which last year hit the headlines when it temporarily overtook the market value of oil giant ExxonMobil – is “optimistic about the expanded investment opportunities that the broad decarbonisation of the US economy presents”, officials said when discussing its 2020 financial results.

CEO Jim Robo said the energy transition was already well underway thanks to the economic advantages of wind and solar, but added: “We believe it is possible that the Biden administration, supported by a significant shift in public support towards taking action to address climate change, may act to further accelerate these shifts through the extension of existing incentives as well as initiating other forms of policy support.”

Biden said he would look to decarbonise the entire US power system by 2035 as one of a raft of pre-election pledges that also promised to support a massive ramp-up in American wind and solar capacity.

“We now believe that a substantial, and economic, decarbonisation of the electricity, transportation and industrial sectors is possible, which represents the potential investment opportunity of trillions of dollars in the coming decades,” said Robo.

NextEra’s massive future ambitions were unveiled after it commissioned 5.7GW of new renewables in 2020 despite the challenges of the Covid pandemic.

Robo noted the last few years have also seen an increased focus on environmental, social and governance on the part of many of the company's stakeholders. This trend will amplify demand among the company's traditional customers and in its core renewables business, and open significant new markets and business opportunities for Energy Resources.

These include soaring sales to commercial and industrial customers, which are striking renewable power deals to meet their own decarbonisation targets, and a growing number of energy storage and potentially hydrogen projects.

The company announced a green hydrogen project at Energy Resources where a 12MW solar array will produce energy to create green hydrogen to power a fuel cell which will be able to provide electricity to the local grid during periods of peak demand. If regulators go along, the $20m facility would enter commercial operation in mid-2023.

However, even as it eyed a bright future in renewables, there was a sting in the tail for NextEra from the fossil industry. The company announced a $1.2bn impairment charge against a delayed US gas pipeline whose prospects may have darkened under the new administration. The charge pushed NextEra to a $5m net loss for the fourth quarter of the year.

Transition

'Trillions of dollars of opportunities': NextEra could build 30GW by 2024 as Biden's America goes green