Alabama Power's major solar push could make state more attractive to companies worldwide

(Video Above: Alabama NewsCenter announces Alabama Power’s new renewable energy initiative)

BIRMINGHAM, Ala. — Alabama Power, the state’s largest electricity provider, announced Tuesday afternoon it is establishing a groundbreaking new renewable energy program, seeking to boost its power from renewables—including solar—to 500 megawatt hours over the next six years.

“This proposal provides a common-sense path for expanding renewables in Alabama,” said Nick Sellers, Alabama Power vice president of regulatory and corporate affairs. “The Public Service Commission [PSC] has been clear that they do not want renewables to be subsidized by all of our customers. This filing achieves that policy directive while also allowing for solar and new renewable energy projects that are expected to provide economic benefit for all of our customers.”

If approved by the PSC, Alabama Power would work with interested customers to build its own renewable projects, or purchase energy from other renewable-generated sources.

According to the Alabama NewsCenter, 500 megawatts of solar power is enough renewable energy to serve about 100,000 homes during an hour of peak sun intensity on cloudless days. Alabama Power already has 1,600 megawatts of hydro resources across Alabama, and 404 megawatts of wind generation from projects in Kansas and Oklahoma.

To help keep prices low for participating customers, excess energy from renewable sources could be sold for renewable energy credits or sold to other energy companies.

“The renewable generation program would provide broad options for us to work with customers willing to pay for renewable costs, while allowing us to protect other customers from bearing additional costs,” said Tony Smoke, Alabama Power vice president of marketing.

The growing push from companies, particularly tech companies, to move toward renewable resources has been heard loud and clear by both Alabama Power and the communities seeking to recruit those businesses. The TVA’s use of renewables has even been cited by some as a reason Google decided to build a data center in the region of Alabama serviced by the federally-owned utility company.

“As a service provider, our focus is to make sure we are providing customers access to choices they want,” Smoke explained. “Through this plan, we are creating new customer options to sustain and grow industry in our state.”

Coupled with pressure from environmentally-conscious companies to expand renewable options has been a multitude of Environmental Protection Agency (EPA) mandates requiring a decrease in the use of coal-fired power plants.

Alabama Power alone has already spent more than $3 billion to comply with the EPA’s increasing list of demands, causing the company to file for its first rate increase since 2011 last December.

While renewable sources are not currently as economically attractive as traditional power sources, it is private sector experimentation and innovation that will make the technology more affordable.

In its announcement Alabama Power made clear the new program would not create an unfair burden on customers.

“As those costs continue to come down over time, I think you will see some growth in the renewable area. That’s the key for us – we want to make sure our resources are cost-effective for customers.”

(H/T Mike Tomberlin at Alabama NewsCenter)