MONTGOMERY, Ala. – The Public Service Commission unanimously approved a 1,400-acre, 200-megawatt solar power and battery storage project in Macon and Bullock Counties proposed by Alabama Power at its meeting this week.
Alabama Power, the state’s largest utility, will construct, own and operate the two elements that make up the Clearview Ranch Project but won’t pay for the construction of the solar portion.
Meta subsidiary Dotier, LLC is financing the solar facility and has committed to purchasing 100% of the facility’s output for a 20-year term.
The tech giant, which owns Instagram, Facebook and WhatsApp, is also constructing a $1.5 billion data center in Montgomery. It wasn’t explicitly stated in its filings, but it is likely the company will use the energy from Clearview Ranch to power the center.
“Meta is supporting the solar project through Alabama Power’s Renewable Subscription Program and will receive all the renewable energy credits generated by the solar project,” a web page about the project published by the utility said. “The project reflects Meta’s commitment to paying the full cost of its energy needs through Alabama Power, helping fund new energy resources while ensuring other customers are not impacted from project costs.”
In addition to approving the construction of the facility, the PSC also approved the contract between Alabama Power and Dotier.
The solar plant has an expected service life of 35 years and will produce around 485,000 megawatt-hours in its first full year of operation, according to filings about the facility. The 200-megawatt battery energy storage system has a shorter expected lifespan of 20 years and has a duration capacity of two hours.
Data centers and large energy generation projects have been the subject of controversy across the country, with many local residents strongly opposing data centers in their areas.
The PSC is currently seeking public input about how it should evaluate data center contracts going forward because of legislation mandating that data centers benefit their surrounding communities.
Commission President Cynthia Almond recognized the hot-button issue and reiterated the PSC’s role in approving the facilities at Wednesday’s meeting.
“The commission’s role was not to evaluate or approve the project’s location or siting, we don’t have that authority, but rather to determine whether it satisfied the Renewable Generation Certificate criteria, including whether it would have a positive economic impact on Alabama Power’s customers,” Almond said.
She said that PSC staff reviewed Alabama Power’s application and determined that the project will not negatively impact the utility’s customers.
“In fact, because Dotier is bearing all of the project costs, Alabama Power’s customers are expected to benefit over time rather than to ever have to pay for the projects, just wanted to make that clear on the record,” Almond said.
Alabama Power confirms on its website that the project won’t hike up rates for other customers.
The utility also estimates that Clearview Ranch will generate around $110 million in state and local tax impacts over two decades. That includes $56 million in Bullock County and $27 million in Macon County, according to its website.
Documents filed with the PSC list the facility’s target commercial operation date as June 30, 2029. Construction will create around 400 jobs, according to Alabama Power.