Alabama Power, Mercedes Benz get green light on 80-MW solar project
Alabama Power and Mercedes Benz US International (MBUSI) received approval from the Alabama Public Service Commission today for the proposed 80-MW Letohatchee Solar Project in Lowndes County, south of Montgomery. This project and the renewable contract between Alabama Power and MBUSI build on a long-standing partnership between the two companies and align with the shared vision to improve the use of renewable energy.
Under the 15-year contract, MBUSI will receive all of the facility’s renewable energy credits (RECs), which will cover a significant portion of the electrical needs for the Vance and Bibb County campuses. Alabama Power will receive the entire electrical output of the project under a 15-year power purchase agreement.
The Letohatchee Solar Project is expected to provide approximately 300 construction jobs and generate more than $9 million in tax revenue for Lowndes County over the life of the project. Commercial operation is expected to begin in March 2024.
“At Alabama Power, we are committed to providing our customers with innovative energy solutions and supporting the growth of communities in Alabama,” said Alabama Power President and CEO Mark Crosswhite. “This agreement builds on our partnership with Mercedes and will help us deliver long-term value to our customers while increasing zero-emission resources.”
Mercedes-Benz Cars first announced its holistic approach to climate protection under the sustainable mobility strategy known as “Ambition 2039” – setting targets that span all stages of the automotive value chain – from technical development to the extraction of raw materials, to production, service life and recycling.
“MBUSI’s commitment to the Letohatchee Solar Project is an important step in realizing this strategy for powering their Vance and Bibb campuses,” said Michael Goebel, president and CEO of MBUSI. “As we ramp up battery and electric vehicle production in Alabama in 2022, MBUSI is seen as a critical location for Mercedes-Benz’s transition to a zero-emission and software-driven future.”
The Letohatchee Solar Project builds on the growth of utility-scale solar in Alabama under the Renewable Generation Certificate program approved by the PSC and reauthorized this year.
News from Alabama Power