Southern Power expands Millers Branch Solar Facility in Texas

Rhea-AI Summary

Southern Power, a subsidiary of Southern Company, has announced the expansion of its Millers Branch Solar Facility in Texas, adding 180 MW to the existing 200 MW project. The total capacity could reach 500 MW. The project aims to provide renewable energy solutions to diverse customers and communities, with commercial operation expected in the second quarter of 2026. Various companies have signed power purchase agreements to support the environmental attributes of the expansion. This move aligns with Southern Power's strategy of bolstering its wholesale business through long-term contracts with reliable partners.

Positive

• Expansion of Millers Branch Solar Facility adds 180 MW to the existing 200 MW, with potential to reach 500 MW total capacity.

• Diverse group of customers and communities benefit from renewable energy solutions provided by the project.

• Commercial operation for Phase II expected in the second quarter of 2026.

• Companies like Cisco, Juniper Networks, and others have signed power purchase agreements to support the environmental attributes of the 180 MW expansion.

• Southern Power continues to strengthen its wholesale business through long-term contracts with reliable counterparties.

Negative

• None.

Insights

Energy Sector Analyst

The expansion of the Millers Branch Solar Facility by Southern Power indicates a strategical move towards enhancing their renewable energy portfolio. This initiative not only increases the company's solar capacity by 180 MW but also signals commitment to a long-term vision of sustainability. The project's alignment with Southern Power's business strategy of developing assets with robust credit support counter-parties, such as those in the Net Zero Consortium for Buyers, underpins financial stability. The upfront investment for expansion signals confidence in the renewable sector's growth trajectory and likely anticipates increased demand from businesses aiming to bolster their sustainability profiles.

Environmental, Social and Governance (ESG) Strategist

Southern Power's expansion of its solar facility and the corresponding power purchase agreements (PPAs) with members of the Net Zero Consortium for Buyers, address an essential aspect of ESG investing: environmental sustainability. Investors increasingly evaluate energy companies based on their ESG metrics and Southern Power is positioning itself favorably in this regard. The PPAs give assurance of predictable revenue streams, which is appealing to investors focused on stability and risk mitigation. Additionally, the company's commitment to a 500 MW target suggests a forward-looking approach to energy production that aligns with global trends towards decarbonization.

Renewable Energy Market Analyst

The expansion of Southern Power's Millers Branch Solar Facility is a notable event in the renewable energy market. By securing PPAs for the facility's entire Phase II output, Southern Power demonstrates the growing demand for renewables in Texas, a traditionally oil-centric economy. These PPAs likely reflect a competitive pricing structure for Southern Power, given the interest from major corporations. The project's scale and the buyer consortium's high-profile nature may create pricing pressure on other renewable projects in the region, setting a new benchmark for costs and returns in the Texan renewable energy market.

ATLANTA, May 1, 2024 /PRNewswire/ -- Southern Power, a leading U.S. wholesale energy provider and subsidiary of Southern Company, today 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.

About Southern Company
Southern Company (NYSE: SO) is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. Providing clean, safe, reliable and affordable energy with excellent service is our mission. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy distribution company with national capabilities, a fiber optics network and telecommunications services. Through an industry-leading commitment to innovation, resilience and sustainability, we are taking action to meet customers' and communities' needs while advancing our goal of net zero greenhouse gas emissions by 2050. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success. We are transforming energy into economic, environmental and social progress for tomorrow. Our corporate culture and hiring practices have earned the company national awards and recognition from numerous organizations, including Forbes, The Military Times, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit www.southerncompany.com.

Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the construction and subsequent operation of the Millers Branch Solar Facility, including the expected commercial operation date for the Phase II expansion and potential further expansion opportunities. Southern Company and Southern Power caution that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company and Southern Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in each of Southern Company's and Southern Power's Annual Reports on Form 10-K  for the year ended December 31, 2023, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of facilities, to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of any tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; performance of counterparties under ongoing renewable energy partnerships and development agreements; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or Southern Power; and catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars, or other similar occurrences. Southern Company and Southern Power expressly disclaim any obligation to update any forward-looking information.

View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-power-expands-millers-branch-solar-facility-in-texas-302132728.html

SOURCE Southern Power

FAQ

What is the name of the solar project being expanded by Southern Power in Texas?

Southern Power is expanding the Millers Branch Solar Facility in Texas.

How much additional capacity is the Phase II expansion adding to the Millers Branch Solar Facility?

The Phase II expansion is adding 180 MW to the existing 200 MW, with a total potential capacity of around 500 MW.

When is Phase II of the Millers Branch Solar Facility expected to achieve commercial operation?

Phase II of the Millers Branch Solar Facility is expected to achieve commercial operation in the second quarter of 2026.

Which companies have signed power purchase agreements with Southern Power for the environmental attributes of the Phase II expansion?

Companies like Cisco, Juniper Networks, IDEXX Laboratories, Inc., Cadence, Bio-Rad, PTC, and a large healthcare company have signed power purchase agreements with Southern Power for the environmental attributes of the 180 MW Phase II expansion.

What is the total solar portfolio capacity of Southern Power currently operating or under construction?

Southern Power's solar portfolio consists of more than 2,920 MW of solar generation currently operating or under construction.

How many solar and wind facilities make up Southern Power's renewable fleet?

Southern Power's renewable fleet includes 30 solar and 15 wind facilities currently operating or under construction.