Southern Power, a subsidiary of Southern Co., agreed to acquire Apex Clean Energy's 151 MW Grant Wind Farm, located in Grant County, Okla.
The acquisition, Southern Power's second wind asset, is expected to close in March 2016.
Apex Clean Energy is managing the construction of Grant Wind and will continue to operate and maintain the facility post-construction. IEA Renewable Energy is the engineering, procurement and construction contractor. Construction began in August, and the plant is expected to achieve commercial operation in March 2016. Sixty-six Siemens turbines will power the wind farm.
In March, Southern Power announced an agreement to acquire its first wind project – the 299 MW Kay Wind facility in Oklahoma, also from Apex Clean Energy – which is expected to close in the fourth quarter.
The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under 20-year power purchase agreements with Western Farmers Electric Cooperative, East Texas Electric Cooperative and Northeast Texas Electric Cooperative. The companies have each contracted for approximately 50 MW and will have the option to either keep or sell the RECs.
The Grant Wind project fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.
With the addition of the Grant Wind facility, Southern Power's renewable ownership is expected to reach more than 1.6 GW, with 21 solar, wind and biomass facilities that have been either announced, acquired or are now under construction. Across its system, Southern Co. has added or announced more than 3,400 MW of renewable generation since 2012.
‘Southern Company is committed to the full portfolio, and this project is an important step in further expanding our fuel mix,’ says Thomas A. Fanning, Southern Co.'s chairman, president and CEO. ‘Our second wind project, and one of Southern Power's more than 20 renewable projects across America, the Grant Wind facility is a smart investment that expands our company's presence in a region with exceptional wind resources.’