NextEra Energy’s president and CEO, John Ketchum, says his company is well-positioned to shield its renewable energy projects from early tax credit phase-outs under the One Big Beautiful Bill Act. This could give the company a competitive edge in the market as costs for competing developers rise.
Ketchum expects NextEra’s projects to be safe-harbored through 2029, thanks to being in a “constant state of construction.” This should attract more customers in 2028 and 2029, while competitors struggle with rising costs. The company aims to capitalize on growing demand for new gas and nuclear generation, but Ketchum notes that predicting customer needs beyond 2030 is still too early.
However, executives at NextEra are skeptical of concerns that the reconciliation bill limits renewable energy growth. CFO Michael Dunne argues that the law simply changes the rule set, allowing the company to continue building essential energy infrastructure.
The company’s stock price slipped nearly 5% following a Wednesday morning earnings call, despite beating second-quarter earnings estimates. Analysts questioned Ketchum’s claims about avoiding tax credit losses, citing a lack of long-term earnings projections.
NextEra Energy Resources has signed contracts for 3.2 GW of new projects since April, including 1.8 GW in wind and solar projects. However, orders for new wind projects are slowing, while demand for energy storage is growing. The company remains committed to developing natural gas generation and nuclear energy, with a focus on small modular reactors and exploring reopening the Duane Arnold nuclear power plant in Iowa.
Source: https://www.utilitydive.com/news/trumps-big-bill-is-tough-but-constructive-for-renewables-nextera/753888