Southern Co. (NYSE: SO) subsidiary Southern Power announced Dec. 22 the acquisition of two wind projects in Texas – the 174-MW Salt Fork Wind Facility and the 126-MW Tyler Bluff Wind Facility – from EDF Renewable Energy.
With these acquisitions, Southern Power owns more than 1,000 MW of wind power. With the addition of these two facilities, Southern Power has announced more than 3,000 MW of renewable generation across 35 solar, wind and biomass facilities that are operational or under construction. In total, the Southern Company system has added or announced more than 4,000 MW of renewable generation since 2012.
“Southern Power is committed to strategically growing our wind generation portfolio,” said Southern Power President and CEO Buzz Miller. “We are proud to add our second and third Texas wind facilities as we continue to help meet the energy needs of our customers.”
The projects that Southern Power bought are:
- The Salt Fork Wind Facility, located in Donley and Gray counties, Texas, which consists of 87 wind turbines manufactured by Vestas. The electricity and associated renewable energy credits (RECs) generated will be sold under separate, long-term contracts. The city of Garland, Texas, has signed a 14-year power purchase agreement for 150 MW and Salesforce has signed a 12-year agreement for 24 MW.
- The Tyler Bluff Wind Facility, located in Cooke County, Texas, which consists of 52 wind turbines made by Siemens. The majority of the facility’s output is covered by an agreement with Procter & Gamble, allowing that company to offset 100% of the electricity needs for all its North America-based Fabric & Home Care plants. Southern Power will have the option to keep or sell the remaining RECs.
EDF Renewable Energy managed the development and construction of the facilities, which achieved commercial operation this month (December 2016). EDF Renewable Services, the operations and maintenance subsidiary of EDF Renewable Energy, will provide balance-of-plant services.
“The EDF RE team is pleased to forge a new business relationship with Southern Power through these transactions. We are confident that our expertise as a developer, construction manager and operator complements Southern Power’s strategy to grow its wholesale business through the acquisition of renewable assets covered by long-term contracts,” said Raphael Declercq, Vice President of Portfolio Strategy. “The sale of a portion of our assets represents an integral part of our business model to maintain a balance between growing our own portfolio while continuing to help fund the development of new projects.”
EDF Renewable Energy is one of the largest renewable energy developers in North America with 8 GW of wind, solar, storage, biomass and biogas projects developed throughout the U.S., Canada, and Mexico. The operations and maintenance subsidiary, EDF Renewable Services, operates 11 GW throughout North America. EDF Renewable Energy is a subsidiary of EDF Energies Nouvelles.
Southern Power and its subsidiaries own or have the rights to 45 facilities operating or under construction in 11 states with more than 12,300 MW of generating capacity in Alabama, California, Florida, Georgia, Maine, Nevada, New Mexico, North Carolina, Oklahoma and Texas.