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Southern Co.'s (SO) Unit Acquires Two Renewable Facilities
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Southern Co.'s (SO - Free Report) subsidiary, Southern Power, acquired two solar facilities, the 200-megawatt Millers Branch Solar Facility in Haskell County, TX, and the 150-megawatt South Cheyenne Solar Facility in Wyoming. These acquisitions add to Southern Power's growing renewable energy portfolio, which now consists of 30 solar and 15 wind facilities that are either operating or under construction.
This acquisition brings the subsidiary’s total solar generation portfolio to more than 2,740 MW, and its overall renewable fleet to 5,280 MW.
A Milestone in Sustainable Energy
Southern Power’s president Robin Boren described these two acquisitions as a milestone for the company, signifying its entry into projects with expansion potential. The addition of the Millers Branch and South Cheyenne facilities strengthens its solar portfolio and highlights its dedication to SO's ongoing growth in shaping the future of the energy sector.
These acquisitions highlight Southern Co.’scommitment to a sustainable energy future. As the company progresses toward its goal of achieving net zero greenhouse gas emissions by 2050, it anticipates a substantial capacity of 20,000 MWs of renewable energy by 2030.
Strengthening Wholesale Business
SO's strategy revolves around strengthening its wholesale business by acquiring and developing generating assets that are secured by long-term contracts with creditworthy counterparties.
Millers Branch is on track to commence its commercial operations in the fourth quarter of 2025. Once the facility becomes operational, Thermo Fisher Scientific will be able to sell the electricity and related renewable energy credits that it generates under a virtual power purchase agreement, which will last for 20 years. Thermo Fisher Scientific is utilizing renewable energy certificates to drive progress toward its net-zero-by-2050 commitment.
The South Cheyenne Solar Facility
The construction of the South Cheyenne Solar Facility, SO's first solar facility in Wyoming, is currently underway. The project was developed by Qcells USA, which is also responsible for the engineering, procurement and construction of the project; it also serves as the module supplier. The facility is expected to begin commercial operations in the first quarter of 2024.
Impact on Clean Energy
SO's acquisitions and investments in renewable energy highlight its dedication to a sustainable future. With a growing fleet of solar and wind facilities, the company is taking substantial steps toward reducing its carbon footprint and helping its clients transition to cleaner energy sources.
The solar projects align with SO's broader business strategy, which focuses on establishing a robust wholesale business through long-term contracts. These endeavors not only enhance SO’s clean energy portfolio but also support its commitment to making clean energy accessible and reliable for its customers.
The Way Forward
As SO continues to expand its renewable energy capacity, the acquisition of the Millers Branch and South Cheyenne Solar Facilities is suggestive of the transformation happening within the energy industry. The company’s dedication to sustainability, bolstered by strategic investments, positions it as a leader in the transition to clean energy.
With these acquisitions, SO is not just meeting the increasing demand for clean energy but also actively shaping the future of power generation. Its vision of a world powered by renewable energy is no longer a distant dream, but a tangible reality.
Zacks Rank and Other Key Picks
SO is an American utility firm that provides electricity to customers across Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #2 (Buy).
Consolidated Water is worth approximately $489.76 million. It currently pays dividends of 38 cents per share or 1.22% on an annual basis.
It develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
Centrica is worth approximately $10.22 billion. It currently pays dividends of 12 cents per share or 1.60% on an annual basis.
CPYYY, a leading FTSE100 company, operates in the U.K., North America and Europe, providing gas and electricity to millions of homes and businesses. It offers a variety of home energy solutions and low-carbon products and services.
Otter Tail is valued at around $3.14 billion. In the past year, its shares have risen 19.9%.
OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries.
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Southern Co.'s (SO) Unit Acquires Two Renewable Facilities
Southern Co.'s (SO - Free Report) subsidiary, Southern Power, acquired two solar facilities, the 200-megawatt Millers Branch Solar Facility in Haskell County, TX, and the 150-megawatt South Cheyenne Solar Facility in Wyoming. These acquisitions add to Southern Power's growing renewable energy portfolio, which now consists of 30 solar and 15 wind facilities that are either operating or under construction.
This acquisition brings the subsidiary’s total solar generation portfolio to more than 2,740 MW, and its overall renewable fleet to 5,280 MW.
A Milestone in Sustainable Energy
Southern Power’s president Robin Boren described these two acquisitions as a milestone for the company, signifying its entry into projects with expansion potential. The addition of the Millers Branch and South Cheyenne facilities strengthens its solar portfolio and highlights its dedication to SO's ongoing growth in shaping the future of the energy sector.
These acquisitions highlight Southern Co.’scommitment to a sustainable energy future. As the company progresses toward its goal of achieving net zero greenhouse gas emissions by 2050, it anticipates a substantial capacity of 20,000 MWs of renewable energy by 2030.
Strengthening Wholesale Business
SO's strategy revolves around strengthening its wholesale business by acquiring and developing generating assets that are secured by long-term contracts with creditworthy counterparties.
Millers Branch is on track to commence its commercial operations in the fourth quarter of 2025. Once the facility becomes operational, Thermo Fisher Scientific will be able to sell the electricity and related renewable energy credits that it generates under a virtual power purchase agreement, which will last for 20 years. Thermo Fisher Scientific is utilizing renewable energy certificates to drive progress toward its net-zero-by-2050 commitment.
The South Cheyenne Solar Facility
The construction of the South Cheyenne Solar Facility, SO's first solar facility in Wyoming, is currently underway. The project was developed by Qcells USA, which is also responsible for the engineering, procurement and construction of the project; it also serves as the module supplier. The facility is expected to begin commercial operations in the first quarter of 2024.
Impact on Clean Energy
SO's acquisitions and investments in renewable energy highlight its dedication to a sustainable future. With a growing fleet of solar and wind facilities, the company is taking substantial steps toward reducing its carbon footprint and helping its clients transition to cleaner energy sources.
The solar projects align with SO's broader business strategy, which focuses on establishing a robust wholesale business through long-term contracts. These endeavors not only enhance SO’s clean energy portfolio but also support its commitment to making clean energy accessible and reliable for its customers.
The Way Forward
As SO continues to expand its renewable energy capacity, the acquisition of the Millers Branch and South Cheyenne Solar Facilities is suggestive of the transformation happening within the energy industry. The company’s dedication to sustainability, bolstered by strategic investments, positions it as a leader in the transition to clean energy.
With these acquisitions, SO is not just meeting the increasing demand for clean energy but also actively shaping the future of power generation. Its vision of a world powered by renewable energy is no longer a distant dream, but a tangible reality.
Zacks Rank and Other Key Picks
SO is an American utility firm that provides electricity to customers across Southern United States. It is one of the country's largest energy companies, focusing on clean energy and sustainability. Currently, SO carries a Zacks Rank #2 (Buy).
Investors interested in the utility sector might look at some other top-ranked stocks like Consolidated Water (CWCO - Free Report) , Centrica (CPYYY - Free Report) , and Otter Tail (OTTR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated Water is worth approximately $489.76 million. It currently pays dividends of 38 cents per share or 1.22% on an annual basis.
It develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
Centrica is worth approximately $10.22 billion. It currently pays dividends of 12 cents per share or 1.60% on an annual basis.
CPYYY, a leading FTSE100 company, operates in the U.K., North America and Europe, providing gas and electricity to millions of homes and businesses. It offers a variety of home energy solutions and low-carbon products and services.
Otter Tail is valued at around $3.14 billion. In the past year, its shares have risen 19.9%.
OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries.