Southern Company’s (SO) subsidiary, Southern Power, recently announced the acquisition of its 30th solar project, the 150-megawatt (MW) South Cheyenne Solar Facility, from Qcells USA Corp. This acquisition is a testament to Southern Power's commitment to renewable energy and a milestone in its journey toward a sustainable future.
The 30th Solar Project
Southern Power president Robin Boren proudly stated, "We are pleased to announce the acquisition of our 30th solar project. This project enhances our solar portfolio and exemplifies our commitment to the continued growth of Southern Power as we build the future of energy." This announcement signifies the Southern subsidiary’s dedication to expanding its renewable energy footprint and contributing to a greener tomorrow.
Location and Expected Operation Time
The South Cheyenne Solar Facility, situated in the scenic state of Wyoming, holds a unique position as Southern Power's inaugural solar project in the region. This strategic move demonstrates its ambition to diversify its clean energy assets, which currently spans from California to Maine.
Construction is already underway, and the facility is expected to achieve commercial operation in the first quarter of 2024, marking a substantial step toward a sustainable energy future in Wyoming.
Qcells USA's Role
Qcells USA, the developer behind South Cheyenne, is not just responsible for its inception but also plays a key role in its engineering, procurement and construction. Additionally, it serves as the module supplier for this remarkable project, further emphasizing its commitment to renewable energy advancements.
Boosting Local Economy
The South Cheyenne Solar Facility is not only about generating clean energy; it's also a source of economic prosperity for Wyoming. During the peak construction phase, it is expected to create approximately 180 jobs, providing employment opportunities and fostering local growth.
Significance of the Project
Once operational, the South Cheyenne Solar Facility will deliver long-term value to Wyoming customers through a 20-year power purchase agreement. The electricity and associated renewable energy credits generated by the facility will contribute to the region's economic stability and reduce its carbon footprint.
Southern Power's Solar Portfolio
With the addition of the South Cheyenne Solar Facility, Southern Power's solar portfolio has surpassed 2,740 MW of solar generation capacity. These solar facilities are an integral part of Southern Power's broader 5,280 MW renewable fleet, which comprises 30 solar and 15 wind facilities currently in operation or under construction. This impressive portfolio reflects Southern Power's dedication to promoting clean energy solutions across the United States.
This acquisition aligns seamlessly with Southern Power's overarching business strategy, which focuses on enhancing its wholesale business. By acquiring and developing generating assets covered by long-term contracts with strong credit support, Southern Power ensures the reliability and sustainability of its energy operations. This strategic approach not only benefits the company but also contributes to a more resilient and cleaner energy future for the nation.
In conclusion, Southern Power's acquisition of the South Cheyenne Solar Facility not only underscores the company's commitment to clean energy but also signifies its strategic vision to strengthen its position as a leading U.S. wholesale energy provider. As the world continues to shift toward sustainable energy sources, Southern Power stands at the forefront, setting an example for others to follow.
Zacks Rank and Other Key Picks
SO is an American utility firm that provides electricity to customers across Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #2 (Buy).
Investors interested in the utility sector might look at some other top-ranked stocks like RWE AG RWEOY and Consolidated Water CWCO, each sporting a Zacks Rank #1 (Strong Buy), and E.ON EONGY, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RWE AGis worth approximately $26.28 billion. It currently pays dividends of 69 cents per share, or 1.76% on an annual basis.
RWEOY, one of Europe's five largest utilities, operates in the generation, transmission, sale, and trading of electricity and gas, as well as the water business in Continental Europe, providing a strong position to capitalize on the increasing energy demand.
Consolidated Water is worth approximately $460.64 million. It currently pays dividends of 34 cents per share or 1.16% on an annual basis.
It develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
E.ON is valued at around $32.44 billion. In the past year, its shares have risen 57.5%.
E.ON is the world's largest investor-owned energy service provider with operations in energy, chemicals, real estate, oil, telecommunications, distribution/logistics, aluminum and silicon wafers.
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