Southern Power, a subsidiary of Southern Company, an electric utility, acquired 150 MW of South Cheyenne Solar Project from Qcells USA. The project is currently under construction and is expected to reach commercial operation in the first quarter of 2024. The project is located in Wyoming and is Southern Power’s first solar facility in the state.
Once operational, the electricity and associated renewable energy credits generated by the facility will be sold under a 20-year power purchase agreement. This project aligns with Southern Power’s overall business strategy of strengthening its wholesale business by acquiring and developing generating assets that are covered by long-term contracts with counterparties with strong credit support.
With the addition of South Cheyenne, Southern Power’s solar portfolio includes more than 2,740 MW of solar generation. Southern Power’s solar facilities are a part of the company’s 5,280 MW renewable fleet, which consists of 30 solar and 15 wind facilities operating or under construction.
“We take pride in providing unique development solutions and fostering a strong, collaborative partnership for driving renewable energy advancements,” said Qcells USA President IP Kim. “We are proud to partner with Southern Power to deliver long-term value to Wyoming customers through the South Cheyenne Solar Facility.”
Last week, Southern Power acquired the 200 MW Millers Branch solar project from EDF Renewables.
According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in the first half (1H) of 2023, 116 solar project acquisitions totaling 25.5 GW were announced compared to 148 project acquisitions totaling 37.8 GW in 1H 2022.