Alabama Power gets thumbs up for 80-MW solar project

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE:SO), said yesterday it has obtained approval for an 80-MW solar project that will help Mercedes-Benz Cars meet its sustainability goals.

An agreement between Alabama Power and Mercedes Benz US International Inc (MBUSI) was on Tuesday approved by the Alabama Public Service Commission.

Under the 15-year deal, MBUSI will get all the renewable energy credits (RECs) from the 80-MW Letohatchee solar project, located south of Montgomery in Lowndes County.

Alabama Power will receive the entire electric output from the project under a power purchase agreement (PPA) of the same duration. The solar farm is expected to come onstream in March 2024.

The RECs contract will cover a large part of the electricity needs for MBUSI’s Vance and Bibb County campuses.

"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," said Michael Goebel, MBUSI president and chief executive.

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