NextEra Energy, Inc. (NYSE:NEE) Q1 2024 Earnings Call Transcript

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I think we’re the least behind of anybody with our 300 gigawatt portfolio, but some of this will take some time to materialize. I feel very confident in long term trends. I feel really excited and pleased with our team’s preparedness in terms of the development of that pipeline. And I very much think our competitive advantages that John highlighted on scale, experience, and technology really position us well in the types of conversations we’re having with our customers, creating this long term visibility into demand dynamics. You guys asked John the question about data centers and how competitive we are with them. They are not looking for projects anymore. They are looking for integrated solutions that solve long-term problems for them, and we are a perfect partner for them with which to work.

Durgesh Chopra: That’s very helpful, Rebecca. And then maybe just a quick follow up. I think you made comments around very healthy returns. Are you seeing higher returns, higher margins with your data center clients versus your other clients? I mean, some of your peers have highlighted high returns there. Maybe just comment on that.

Rebecca Kujawa: I continue to believe we have very attractive returns across the board, consistent with the comments that I’ve made today, as well as the comments we made at our development 101-day and included in our monthly updates for investor materials. So mid-teens and solar, and above 20% for both wind and storage, of course, as we talk with customers and we have unique solutions that solve particular problems that we have, we design the solutions to meet those needs and always stay focused at the end of the day on what’s the attractive value proposition from an investor standpoint and we remain disciplined around that. So I love the portfolio, I love positioning, and I believe what we ultimately deliver for investors is very attractive.

Durgesh Chopra: That is very helpful. Thank you very much.

Operator: The next question comes from Jeremy Tonet with JPMorgan. Please go ahead. Excuse me, Mr. Tonet, your line is open. Is your phone…? Thank you.

Jeremy Tonet: Good morning. I just want to start off on storage originations coming in quite strong and if there’s any?

Rebecca Kujawa: Hey, Jeremy, it’s Rebecca. I’m going to go for the presumptive close on the answer. Hopefully it’s the question you actually asked. Storage origination is very strong, as Kirk highlighted in some of the prepared remarks, and John commented in Q&A, as we think about our customers’ needs for energy and capacity, it remains a very attractive value proposition to incorporate storage to firm up renewables, either co located or separate so we’re seeing terrific origination from an energy resources perspective and we’ve also talked today about the attractiveness of storage at FPL. So I’ll hand it off to Armando to give some additional color.

Armando Pimentel: Thanks, Rebecca. So I would add, if you recall John and Kirk’s comments, we filed our 10 year site plan, which we do every year. Our 10 year site plan this year had the same amount of solar that it did last year, which is a lot of solar, 21 gigs over the next 10 years. But we doubled the amount of storage, up to 4 gigawatts of storage that we have in our plan. We increasingly see storage as an economical addition in our service area. My expectations are that as time goes on, that we would likely add more storage to our plans going forward, because it is that attractive in the overall economics, especially as we add solar, which again, continues to be the best proposition from a cost standpoint for our customers.

Jeremy Tonet: Thank you for that. Just going back to the renewable development day or for people that weren’t able to make it, any particular points I want to highlight?

Rebecca Kujawa: Jeremy, you broke up a little bit, so I’m going to again guess a little bit on what the question was, but I’m assuming it was what were some of the key takeaways from the development 101-day. And I hope it was a worthwhile time for our investors. We certainly were so proud of our team and talking about what it is that we believe differentiates us as we talk to our customers. And it really was around that scale experience and technology, not just individually, how all of those are important, but also how they interact with one another. So as John highlighted, the scale advantages comes the ability to deploy technologies that are unique and with experience, we actually are able to invest in capturing that data that we get from scale and put in technologies to actually get some really cool insights.

So I think the key takeaway, from my perspective, is significant load growth. Certainly some opportunities to put deploy that scale experience of technology, to deploy unique and compelling solutions to our customers, so I love our growth prospects. I love the position that we have, just as John highlighted in his comments and look forward to telling you more at the investor conference in June.

Jeremy Tonet: Great. Thank you very much.

Operator: This concludes our question-and-answer session and the NextEra Energy and NextEra Energy Partners LP earning conference call. Thank you for attending today’s presentation. You may now disconnect.

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