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Southern Company (SO) Arm Adds 14th Wind Facility to Its Assets

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Southern Power, a Southern Company (SO - Free Report) subsidiary, recently purchased the 300-megawatt (MW) Deuel Harvest Wind Facility from Invenergy, a Chicago-based developer, owner and operator of power-generation assets and energy solutions.

The Deuel Harvest project is the 14th wind scheme in Southern Power’s portfolio comprising 4,928 megawatt (MW) of renewable energy assets. The company’s wind portfolio now boasts a wind generation capacity of worth more than 2,533 MW with the addition of Deuel Harvest.

The project is in sync with Southern Company’s strategy to invest in renewable energy technologies toward a more sustainable future. The windfarm developed by Invenergy is located in Deuel County, South Dakota that runs 109 wind turbines, delivered by GE Renewable Energy.

The facility's electricity and subsequent renewable energy credits (RECs) are sold under two different power purchase pacts, such as a 25-year agreement with Great River Energy, which will begin in January 2023, and a 15-year deal with Xcel Energy effective October 2021.

With this acquisition, Southern Power, which is an Atlanta wholesale energy provider, will become the majority owner of the project while a minor stake will be held by Invenergy. Meanwhile, the facility will be operated and managed by Invenergy Services, a subsidiary of Invenergy that offers end-to-end energy solutions for asset owners.

Last May, the Southern Company affiliate purchased the 56 MW Beech Ridge Wind Facility from Invenergy. The Beech Ridge II project is Southern Power’s 13th wind scheme and its first venture in the Mid-Atlantic region.

This buyout will make Southern Power the majority owner of the Beech Ridge II project while a negligible interest will be held by Invenergy. The electricity generated and the related renewable energy credits are being sold under a 12-year power purchase pact.

Company Profile

Southern Power, a Southern Company arm, primarily engages in developing, owning and managing power-generation assets including renewable energy projects. This apart, it sells electricity at market-based rates in the wholesale market.

Zacks Rank & Key Picks

Southern Company currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the utilities space include Korea Electric Power Corporation (KEP - Free Report) , National Grid Transco, PLC (NGG - Free Report) and Portland General Electric Company (POR - Free Report) , each presently flaunting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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