Southern Power announced the acquisition of the 120-megawatt (MW) East Pecos Solar Facility. East Pecos is Southern Power's second solar project in Texas and 35th generating facility overall.
"Southern Power's acquisition of the East Pecos Solar Facility underscores the company's commitment to strategically develop renewables across America," said Southern Company CEO Tom Fanning. "This project aligns with its conservative business model as Southern Power has built one of the nation's largest renewable energy portfolios."
First Solar is building the East Pecos Solar Facility and will also operate and maintain the facility. East Pecos will be located on approximately 1,000 acres in Pecos County, Texas, and will have about 1.2 million of First Solar's thin-film, photovoltaic solar modules mounted on single-axis tracking tables.
Construction began in February, and the facility is expected to begin commercial operation in the fourth quarter of 2016.
The electricity and associated renewable energy credits (RECs) generated by East Pecos will be sold under a 15-year power purchase agreement with Austin Energy.
The facility fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.
On Nov. 30, 2015, Southern Power announced the acquisition of a controlling interest in its first solar project in Texas - the 157-MW Roserock Solar Facility.