Alabama Power receives approval for solar project in Lowndes County

Rhea-AI Summary

On December 7, 2021, Alabama Power and Mercedes Benz U.S. International received approval for the 80-megawatt Letohatchee Solar Project in Lowndes County. This initiative, under a 15-year contract, aims to supply renewable energy credits to MBUSI while Alabama Power will procure the electricity generated. The project is expected to create approximately 300 construction jobs and generate over $9 million in local tax revenues. Commercial operations are anticipated to start in March 2024, supporting both companies' commitments to sustainable energy and economic development in Alabama.

Positive

• 80-megawatt solar project approved, enhancing renewable energy usage.
• Expected creation of 300 construction jobs.
• Projected generation of over $9 million in tax revenues for Lowndes County.
• Strengthens long-standing partnership between Alabama Power and MBUSI.

Negative

• None.

BIRMINGHAM, Ala., Dec. 7, 2021 /PRNewswire/ -- Alabama Power and Mercedes Benz U.S. International Inc. (MBUSI) received approval today from the Alabama Public Service Commission for the proposed 80-megawatt Letohatchee Solar Project in Lowndes County, south of Montgomery. This project and the renewable contract between Alabama Power and MBUSI build on a long-standing partnership between the two companies and align with the shared vision of enhancing the use of renewable energy.

Under the 15-year contract, MBUSI will receive all the renewable energy credits (RECs) from the facility, which will cover a significant portion of the electric needs for its Vance and Bibb County campuses. Alabama Power will receive the entire electric output from the project pursuant to a 15-year power purchase agreement.

The Letohatchee Solar Project is expected to create about 300 construction jobs while generating more than $9 million in tax revenues for Lowndes County over the life of the project. Commercial operation is expected to begin in March 2024. 

"At Alabama Power, we're committed to providing innovative energy solutions for our customers and supporting growth of Alabama communities," said Alabama Power President and CEO Mark Crosswhite. "This agreement builds on our partnership with Mercedes and will help us deliver long-term value to our customers while increasing emissions-free resources."

Mercedes-Benz Cars first announced its holistic approach to climate protection under the sustainable mobility strategy known as "Ambition 2039" – setting goals that cover all stages of the automotive value chain – from technical development, to the extraction of raw materials, to production, service life and recycling.

"MBUSI's commitment to the Letohatchee Solar Project is an important action in realizing this strategy for their Vance and Bibb campuses' electric supply," said Michael Goebel, president and CEO, MBUSI. "As we ramp up battery production and electric vehicle production in Alabama in 2022, MBUSI is seen as a critical location for the Mercedes-Benz shift toward an emissions-free and software-driven future."

As a globally operating vehicle manufacturer, MBUSI puts significant focus on improving the environmental soundness of its products and business activities. From energy efficiency and waste avoidance to water consumption and air emissions, more than a dozen environmentally relevant parameters are measured monthly and compared with the facility's aggressive targets. MBUSI will continue to pursue local opportunities and innovations to achieve its goals and ensure long-term success in the region.

The Letohatchee Solar Project builds on the growth of utility-scale solar power in Alabama under the Renewable Generation Certificate program approved by the PSC and reauthorized this year. Earlier this year, the commission approved the 80-megawatt HEP Greenville Solar Project in Butler County, in which Wells Fargo Bank is participating. Solar facilities at the Anniston Army Depot, Fort Rucker and in LaFayette all reached commercial operation in 2017. To date, the commission has approved about 250 megawatts of solar generation under this certificate. 

About Mercedes-Benz U.S. International Inc.
MBUSI – located in Tuscaloosa County, Alabama – is the production location for the GLE-, GLS-, GLE Coupe SUV and the Mercedes-Maybach GLS for all global markets. Mercedes-Benz Cars has invested over $6 billion USD in its production location in Alabama and the plant is further expanding its production footprint with a $1 billion investment for its second campus. The expansion includes construction of a new battery plant to prepare the plant to build electric vehicles at the beginning of this decade. MBUSI currently employs more than 4,400 Team Members and provides more than 10,000 jobs at suppliers and service providers in the region.

About Alabama Power
Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE:SO), provides reliable, affordable electricity to 1.5 million customers across the state. Learn more at www.alabamapower.com.

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SOURCE Alabama Power Company

FAQ

What is the Letohatchee Solar Project?

The Letohatchee Solar Project is an 80-megawatt solar initiative approved for Alabama Power and Mercedes Benz U.S. International, designed to supply renewable energy credits and support local electric needs.

When is the commercial operation start date for the Letohatchee Solar Project?

The project is expected to begin commercial operations in March 2024.

What benefits will the Letohatchee Solar Project bring to Lowndes County?

The project is anticipated to create around 300 construction jobs and generate more than $9 million in tax revenues over its lifetime.

What is the relationship between Alabama Power and Mercedes Benz U.S. International?

They have a long-standing partnership, which includes a 15-year contract for renewable energy supply through the Letohatchee Solar Project.

How does the Letohatchee Solar Project align with sustainability goals?

It supports both companies' commitments to renewable energy and emissions reduction, aligning with Mercedes-Benz's Ambition 2039 climate strategy.