Alabama Power and Mercedes Benz U.S. International Inc. (MBUSI) received approval for an 80 MW solar project south of Montgomery, Alabama. The proposed project enters Mercedes Benz into a 15-year contract in which the automaker will receive all renewable energy credits (RECs) from the facility.
The RECs are expected to cover a significant portion of the electric needs of the automaker’s Vance and Bibb County production facilities. Alabama Power will receive the entire electric output generated by the project. The Letohatchee Solar Project is expected to generate more than $9 million in revenues and create about 300 construction jobs. Commercial operation is pegged for March 2024.
“As we ramp up battery production and electric vehicle production in Alabama in 2022, MBUSI is seen as a critical location for the Mercedes-Benz shift toward an emissions-free and software-driven future,” said Michael Goebel, president and CEO of MBUSI.
This project marks another step of growth of utility-scale solar in Alabama under the Renewable Generation Certificate program that was approved by the Public Services Commission (PSC) and reauthorized this year. Earlier in the year, the PSC approved another 80 MW solar project that Wells Fargo Bank, among others, contracted for.
Solar facilities are active in the Anniston Army Depot, Fort Rucker, and in Lafayette, and to date, the PSC has approved about 250 MW under the Renewable Generation Certificate program.
