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The PSC voted 3-0 to approve the proposal, albeit with certain modifications. Individual projects can have a maximum capacity of 80 MW, amid an annual construction cap of 160 MW, and development on the first project must begin within 12 months.
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At present, Alabama Power is the second largest subsidiary of Southern Power, providing energy for 1.4 million homes. It has 1600 MW of hydropower in place across Alabama, with an additional 404 MW in wind power projects located in Kansas and Oklahoma.
Far from signalling a move away from coal, Alabama Power Vice President of marketing, Tony Smoke, said: “This program was driven by conversations with customers looking to meet renewable mandates pushed down from their headquarters.” This follows a statement released by the Alabama PSC last month attacking President Obama’s Clean Power Plan.
Despite having significant solar reserves, the power source is still to properly catch on in Alabama – it presently has only 2 MW installed solar capacity.