Dive Brief:
- Alabama Power wants to acquire or develop up to 500 MW of renewable generation, largely solar, and filed a plan last month with state regulators to pursue projects over a six-year period.
- Individually, the projects will not top 80 MW but the utility noted that when totaled together the projects could supply enough energy to serve up to 100,000 homes during an hour of peak sun intensity.
- In a statement, the utility said its proposal would allow it to work with customers interested in renewable generation while protecting others from cost subsidies.
Dive Insight:
Saying it developed the proposal following "months of conversations with customers about the kinds of renewable options they would like to see," Alabama Power has asked regulators for authority to pursue up to 500 MW of solar, which it would add to the company's existing hydro and wind portfolio.
“This proposal provides a common-sense path for expanding renewables in Alabama,” Nick Sellers, Alabama Power vice president of regulatory and corporate affairs, said in a statement. “The Public Service Commission has been clear that they do not want renewables to be subsidized by all of our customers. This filing achieves that policy directive while also allowing for solar and new renewable energy projects that are expected to provide economic benefit for all of our customers.”
Under the proposal, filed with the Alabama Public Service Commission in June, the utility could either construct its own projects or purchase renewable generation from other sources. Sellers told Alabama News Center that the 500 MW figure would account for between 4% and 5% of the utility's demand. “We’ve seen a growing trend for more renewables and particularly for solar from some of our customers," he told the news outlet. "It’s usually those customers that are under some sort of a mandate, either a government mandate or a corporate mandate.”
“As a service provider, our focus is to make sure we are providing customers access to choices they want,” said Tony Smoke, Alabama Power vice president of marketing. “Through this plan, we are creating new customer options to sustain and grow industry in our state.”
Alabama Power pointed out that it already has 1,600 MW of hydro resources across Alabama and 404 MW of wind generation from projects in Kansas and Oklahoma. It sells renewable credits when needed, to help keep rates low for customers, the utility said.