Southern Power announced today it had been awarded two 20-year power purchase agreements (PPA) by Southern California Edison (SCE). In this regard, the company will be adding battery-based energy storage resources at both Southern Power’s Tranquillity Solar Facility and Garland Solar Facility in California.
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The awarded projects
This Thursday, Southern Power, a leading U.S. wholesale energy provider and a subsidiary of Southern Company; announced it would be adding battery-based energy storage resources at two Southern California Edison’s (SCE) facilities. Therefore, SCE selected Southern Power and awarded it with two 20-year power purchase agreements (PPA).
In the words of Southern Power President Bill Grantham: “These projects will be two of the first co-located. Furthermore, they will be operating in the California market.”
“We’re excited to be a part of the effort to enhance California’s grid reliability. The addition of these storage resources to our clean energy portfolio is a great strategic fit for our business. Moreover, it will further position Southern Power to meet our customers’ needs as the energy industry continues to evolve;” Grantham added.
According to the company, the battery-based energy storage additions will enhance California’s grid reliability. Consequently, Southern Power will provide SCE and the California ISO (CAISO) with additional flexible resource capacity. Then, it will assist in further integrating intermittent renewable energy into the grid.
Furthermore, the company will add 88 megawatts (MW) of capacity at the Garland Solar Facility in Kern County, California. The provider will also develop 72 MW of energy storage at the Tranquillity Solar Facility in Fresno County, California.
More about Southern Power
In fact, Southern Power will share the ownership of the energy storage projects with AIP Management. Furthermore, Global Atlantic Financial Group will also share the ownership. In fact, these companies already have existing ownership interests in the Garland and Tranquillity solar facilities; which went into commercial operations in 2016.
Specifically, the firm is a leading U.S. wholesale energy provider. Therefore, the company meets the electricity needs of municipalities, electric cooperatives, investor-owned utilities, and other energy customers.
Then, this company and its subsidiaries own or operate 52 facilities in 13 states with more than 12,080 MW of generating capacity. For instance, the company has a presence in Alabama, California, Delaware, Georgia, Kansas, Maine, Nevada, New Mexico, North Carolina, Oklahoma, Texas, Washington, and West Virginia.
To conclude, Southern Company’s filial currently operates the solar projects and will be responsible for managing the energy storage projects upon completion.
Then, these two energy storage projects align with Southern Power’s growth strategy of developing and acquiring projects. In brief, they’ll be covered by long-term contracts with strong credit counterparties.
