Alabama Power to build state's first utility-scale battery storage system on retired power plant site
Rhea-AI Summary
Alabama Power has announced plans to develop Alabama's first utility-scale battery energy storage system (BESS) at the former Plant Gorgas site in Walker County. The new Gorgas Battery Facility will store up to 150 MW of electricity, equivalent to powering approximately 9,000 homes.
The 7-acre facility will feature lithium ion phosphate batteries with a 2-hour duration and recharge capability in just over 2 hours. Construction is scheduled to begin in 2025, with completion expected by 2027. The system will connect directly to the electric grid, allowing it to charge during low-cost periods and discharge during high-cost periods.
The facility aims to enhance grid reliability, support clean energy integration, and provide reserve power for Alabamians. The project represents a sustainable repurposing of the historic Plant Gorgas site, which has served the state since 1917.
Positive
- First utility-scale battery storage system in Alabama
- 150 MW capacity addition to power grid
- Strategic cost management through charge/discharge timing
- Enables better integration of renewable energy sources
- Efficient use of existing infrastructure (retired plant site)
Negative
- Two-year construction timeline before operational benefits
- storage duration of only 2 hours
News Market Reaction 1 Alert
On the day this news was published, SO gained 1.18%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
150 MW facility to provide reserve power for Alabamians
The new Gorgas Battery Facility will store up to 150 MW of electricity generated by other Alabama Power resources. 150 MW is equivalent to the capacity needed to power about 9,000 homes.
"This facility will help Alabama Power understand how we can best use battery systems on our electric grid so that customers have power when they need it," said Jeff Peoples, Alabama Power Chairman, President and CEO. "The project honors Plant Gorgas' legacy, which has played a significant role in powering the state of
The 7-acre facility will be designed as a standalone system that will connect to and charge directly from the electric grid – the interconnected system of high voltage wires and equipment that moves large amounts of electricity across the state.
Construction will begin in 2025, with estimated completion by 2027. The lithium ion phosphate batteries that will make up the system will have a 2-hour duration, with the ability to recharge in a little over 2 hours.
"Batteries can charge when energy costs are lower and discharge when energy costs are higher, helping keep costs down. They can also supply energy to our system quickly in response to changing conditions," said Brandon Dillard, senior vice president of Generation. "We are excited to learn how battery storage technology best fits into our system to reliably serve our customers."
Batteries also have the potential to help integrate additional clean energy resources into the company's generation mix, providing complementary technology for variable, weather-dependent resources, like solar.
"As we work to make our system stronger and smarter, innovative technologies such as battery storage could help ensure a steady energy supply," Dillard added.
The decision to reuse the retired Plant Gorgas site illustrates Alabama Power's focus on sustainable solutions that reinforce its community commitment.
"Plant Gorgas and
About Alabama Power
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Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the expected completion date for the Gorgas Battery Facility. Alabama Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Alabama Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in each of Alabama Power's Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of facilities, to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of any tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction and catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars, or other similar occurrences. Alabama Power expressly disclaims any obligation to update any forward-looking information.
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SOURCE Alabama Power
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