MGM Resorts Signs Agreement to Increase Renewable Energy Use

Rhea-AI Summary

MGM Resorts International (NYSE: MGM) has signed a 25-year power purchase agreement with Escape Solar to significantly increase its renewable energy use. This deal will more than double MGM's access to clean solar electricity, helping the company move closer to its goal of using 100% renewable electricity in North America by 2030.

The Escape Solar + Storage project, to be built in Lincoln County, Nevada, will combine a 115 MW solar facility with a 100 MW/400 MWh battery storage system. Set to begin operations in early 2026, it will produce renewable electricity equivalent to the annual power usage of over 28,000 average U.S. homes. This expansion will enable MGM to cover 100% of the total daytime needs for 11 of its Las Vegas Strip properties, up from the current 90%.

Positive

• Significant increase in renewable energy capacity, more than doubling solar electricity access
• Progress towards 100% renewable electricity goal in North America by 2030
• Extension of renewable power into late afternoon and early evening hours
• Expected reduction of carbon emissions by nearly 250,000 metric tons annually
• Creation of over 250 well-paying construction jobs in Lincoln County, Nevada

Negative

• None.

Hospitality industry leader will more than double solar electricity access 

LAS VEGAS, Sept. 12, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") is making a bold leap toward its ambitious sustainability goals, signing a power purchase agreement with Escape Solar LLC that will more than double its access to clean solar electricity—an extraordinary stride toward a greener future. The agreement will help propel the Company closer to its goal of procuring 100% renewable electricity in North America by 2030. Already a global leader in sustainability with the world's largest direct connect solar array in the hospitality industry, MGM Resorts currently uses solar power for 90% of the total daytime needs at 11 of its iconic Las Vegas Strip properties. This visionary 25-year compact will amplify the Company's renewable energy capabilities and extend production to cover 100% of those properties' total daytime needs. In addition, Escape Solar +'s battery storage will enable the extension of renewable power provided into the late afternoon and early evening hours to include uses such as exterior property lighting.

The Escape Solar + Storage project, which will be operated by Estuary Power, is slated for construction in Lincoln County, Nevada. It will combine a 115 megawatt (MW) solar facility with a state-of-the-art 100 MW/400 MWh battery storage system. The facility will produce an amount of renewable electricity equivalent to the annual power usage of more than 28,000 average U.S. homes. Operations are expected to kick off in early 2026, marking a significant milestone in MGM Resorts' journey to sustainability leadership. 

"This agreement is the next step toward the achievement of our climate goals.  We have our eyes on meeting our science-based targets and goal of sourcing 100% of our electricity in North America from renewable sources by 2030," said Bill Hornbuckle, CEO and President at MGM Resorts. "As we continue the journey toward greater sustainability, we remain dedicated to finding new ways to reduce our carbon footprint, conserve resources and inspire others to join in building a more sustainable world for generations to come."

In 2023, the company achieved two notable goals related to carbon emissions: reduce emissions by square foot by 45% by 2025 and reduce emissions per square foot by 50% by 2030. Since 2016, MGM Resorts has significantly reduced its carbon emissions through renewable energy projects including:

• 323,000-panel Mega Solar Array providing 100 MW to MGM Resorts locations in Las Vegas
• 26,000 solar panels atop the Mandalay Bay Convention Center providing 8.3MW to that property
• 100-kW rooftop solar array to help power T-Mobile Arena
• 3,456 solar panels atop the parking garage at MGM Springfield in Massachusetts

The Company strives to lead the hospitality industry in its response to a changing climate with transparency, accountability and actions informed by the latest climate science. Click here to learn more about climate action at MGM Resorts.

"Estuary is delighted to contribute to MGM Resorts' industry-leading renewable energy objectives by supplying solar energy and battery capacity from our Escape Solar project," said Jill Daniel, CEO of Estuary Power.  "MGM Resorts' purchase of renewable energy from Escape will reduce carbon emissions by nearly 250,000 metric tons annually.  In addition, Escape will generate substantial economic benefits for Lincoln County, Nevada as the first utility scale solar project in the county and will create over 250 well-paying construction jobs." 

ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary LeoVegas AB offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their Company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

ABOUT ESTUARY POWER
Estuary Power, based in Reno, Nevada, is a developer and long-term owner of utility scale energy generation projects.  Estuary has a successful track record of delivering renewable energy to utilities and commercial and industrial customers and a pipeline of over 4 gigawatts of energy generation throughout the western United States.  In 2022, Estuary entered a long-term partnership with Ullico Infrastructure Fund, a $5.5 billion open-ended infrastructure investment fund sponsored by Ullico, a 100-year-old insurance company. 

MGM RESORTS CONTACT:
Andrea Bruce
Manager, Social Impact & Sustainability Communications
abruce@mgmresorts.com

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SOURCE MGM Resorts International

FAQ

What is the new renewable energy agreement MGM Resorts (MGM) has signed?

MGM Resorts (MGM) has signed a 25-year power purchase agreement with Escape Solar to more than double its access to clean solar electricity, aiming to cover 100% of the total daytime needs for 11 of its Las Vegas Strip properties.

When is the Escape Solar + Storage project for MGM (MGM) expected to begin operations?

The Escape Solar + Storage project for MGM (MGM) is expected to begin operations in early 2026.

How much renewable energy will the new MGM (MGM) solar project produce?

The new MGM (MGM) solar project will produce renewable electricity equivalent to the annual power usage of more than 28,000 average U.S. homes.

What is MGM Resorts' (MGM) renewable energy goal for North America?

MGM Resorts (MGM) aims to procure 100% renewable electricity in North America by 2030.