Southern Power Expands Millers Branch Solar Facility in Texas
Southern Power, a subsidiary of Southern Company, announced the expansion of its Millers Branch Solar Facility in Haskell County, Texas. The new phase will add 180 megawatts (MW) to the existing 200 MW, with potential to reach 500 MW.
Scheduled for commercial operation by Q2 2026, the project supports Southern Power's strategy of developing assets with long-term contracts. Prominent companies including Cisco, Juniper Networks, and IDEXX Laboratories have signed power purchase agreements for the Phase II output.
Southern Power's renewable portfolio now includes over 2,920 MW of solar and 5,450 MW of total renewable capacity across 30 solar and 15 wind facilities.
- Expansion adds 180 MW to existing 200 MW facility, enhancing capacity.
- Potential for total project capacity to reach approximately 500 MW.
- Scheduled commercial operation of Phase II by Q2 2026 ensures timely project completion.
- Power purchase agreements with prominent companies such as Cisco and Juniper Networks provide strong revenue assurance.
- Southern Power's solar portfolio now exceeds 2,920 MW, strengthening its market position.
- Overall renewable fleet reaches 5,450 MW, showing significant growth.
- Project aligns with business strategy of securing long-term contracts with financially strong counterparties.
- Project completion extends to Q2 2026, which may be seen as a long timeline.
- Initial phase of 200 MW is only nearing start of construction, suggesting potential delays.
- High reliance on power purchase agreements; any default or withdrawal could impact revenue projections.
Insights
Southern Power's expansion of the Millers Branch Solar Facility represents a strategic move to increase its renewable energy portfolio. From a financial perspective, the addition of 180 MW to the existing 200 MW capacity, with the potential to expand up to 500 MW, suggests a significant
It is also important to highlight that long-term contracts with creditworthy counterparties reduce the risk associated with the project. This strategic expansion aligns with Southern Power's goal to strengthen its wholesale business model, potentially leading to increased market valuation and investor confidence. However, investors should be aware of potential risks, including construction delays and regulatory changes, which could affect project timelines and profitability.
From a renewable energy perspective, the expansion of the Millers Branch Solar Facility is a noteworthy development. The additional 180 MW capacity will contribute to reducing the carbon footprint and support the sustainability goals of the partner companies. Power Purchase Agreements (PPAs) with companies in the Net Zero Consortium for Buyers indicate a strong demand for renewable energy credits (RECs), which are essential for meeting corporate sustainability objectives.
This project also highlights the growing trend of large corporations committing to renewable energy projects to offset their environmental impact. The emphasis on clean energy solutions indicates a shift towards a greener energy mix in the U.S., which could drive further investments in renewable infrastructure. However, challenges such as grid integration and the intermittency of solar power should not be overlooked, requiring advancements in energy storage and grid management technologies.
NORTHAMPTON, MA / ACCESSWIRE / May 22, 2024 / Southern Company
Southern Power, a leading U.S. wholesale energy provider and subsidiary of Southern Company, announced the expansion of its 29th solar project - Millers Branch Solar Facility. The Phase II expansion represents an additional 180-megawatts (MW) from the current Phase I 200 MW facility that is nearing the start of construction. The project has the potential to expand up to a total of approximately 500 MWs.
"We are thrilled to announce the expansion of our Millers Branch Solar Facility," said Southern Power President Robin Boren. "This 180 MW renewable energy expansion represents a clean, innovative solution to help a diverse group of customers achieve meaningful progress on their own sustainability objectives. It's one more example of how Southern Power is building the future of energy and meeting the evolving needs of our customers and communities."
The project, located in Haskell County, Texas, contributes to the company's growing renewable fleet of clean generating assets from California to Maine. Southern Power will lead the continued development and construction of both phases of Millers Branch. Phase II is expected to achieve commercial operation in the second quarter of 2026.
Cisco, Juniper Networks, IDEXX Laboratories, Inc., Cadence, Bio-Rad, PTC and a large healthcare company, with support from Sustainability Roundtable Inc., and together as members of the Net Zero Consortium for Buyers, each signed power purchase agreements with Southern Power for all the environmental attributes, such as renewable energy credits (RECs), produced by the 180 MW Phase II portion of the Millers Branch Solar Facility.
With the addition of Millers Branch Phase II, Southern Power's solar portfolio consists of more than 2,920 MW of solar generation currently operating or under construction. Southern Power's solar facilities are a part of the company's 5,450 MW renewable fleet, which consists of 30 solar and 15 wind facilities currently operating or under construction.
This project aligns with Southern Power's overall business strategy of strengthening its wholesale business by acquiring and developing generating assets that are covered by long-term contracts with counterparties with strong credit support.
About Southern Power
Southern Power, a subsidiary of Southern Company, is a leading U.S. wholesale energy provider meeting the electricity needs of municipalities, electric cooperatives, investor-owned utilities and other energy customers. Southern Power and its subsidiaries, some of which are owned in part with various partners, own or operate 55 facilities operating or under development in 15 states with more than 13,000 MW of generating capacity in Alabama, California, Delaware, Georgia, Kansas, Maine, Nevada, New Mexico, North Carolina, Oklahoma, South Dakota, Texas, Washington, West Virginia and Wyoming.
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SOURCE: Southern Company
View the original press release on accesswire.com
FAQ
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