NextEra Energy (NEE) Investor Day 2024 summary

Strategic vision and market outlook

• Positioned to lead as U.S. electricity demand is forecast to grow 38% over the next two decades, quadrupling the historical rate, driven by technology, industrial electrification, data centers, and population growth, especially in Florida.

• Renewables and storage are identified as the lowest-cost, fastest-to-deploy, and cleanest solutions, expected to account for ~90% of new generation, with forecasts projecting a tripling of renewables growth and a sixfold increase in storage over the next seven years.

• Scale, experience, and proprietary technology, including advanced AI and data analytics, provide a competitive edge in siting, developing, and operating projects, enabling rapid response to market needs and navigating transmission and interconnection challenges.

• Deep relationships with utilities and C&I customers, plus a 300 GW development pipeline and 150 GW of interconnection queue positions, support a two-pronged growth strategy: replacing legacy generation and meeting new load growth.

• The company leverages technology, data, and analytics to optimize power generation, transmission, and customer value, positioning itself as a leader in the convergence of power and technology.

Financial guidance and capital allocation

• Adjusted EPS is expected to grow 6%-8% annually off the 2024 base through 2027, with dividends targeted to grow at or above the EPS growth rate and operating cash flow rising from $11.3B in 2023 to $15-16B in 2027.

• Achieved ~12% adjusted EPS CAGR and ~10% dividend per share CAGR from 2022-2023, outperforming previous guidance.

• Plans $65-$70B in capital expenditures over the next four years, primarily for renewables, storage, and transmission, with FPL investing $34B-$37B and regulated and contracted assets representing ~90% of adjusted EBITDA expectations.

• Energy Resources expects to deploy 36.5 GW-46.5 GW of new renewables and storage by 2027, with project ROEs in the mid-teens for solar and over 20% for wind and storage.

• Maintains an A- credit rating, with access to capital from 85+ banks across 20 countries, and includes asset sales and de-emphasis of gas infrastructure in the outlook.

Business developments and operational highlights

• FPL’s customer bills are 37% below the national average, with O&M costs 70% lower than peers, achieved through relentless efficiency, technology adoption, and a focus on reliability.

• FPL will invest $12B in solar and $1.5B in battery storage over four years, aiming for 25 GW of solar and storage by 2033 and nearly doubling battery storage deployment to 4 GW over the next decade, supporting a zero-carbon goal by 2045 at zero incremental customer cost.

• Energy Resources leverages a massive operating portfolio and backlog, with 15 GW of surplus interconnection capacity enabling rapid deployment of co-located batteries and repowering projects.

• Advanced digital platforms, AI-driven tools, and centralized operations deliver 20%-25% lower O&M costs and enable fast, data-driven site selection and project execution.

• The company is expanding voluntary programs in EV charging and green hydrogen, and is positioned to capture data center expansion in Florida due to its low-cost, reliable, and clean power.