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Released December 29, 2014 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Georgia Power Company (Atlanta, Georgia), a unit of the Southern Company (NYSE:SO) (Atlanta, Georgia), will build, own and operate three 30-megawatt (MW) photovoltaic (PV) generation facilities that will be built on U.S. Army bases in the Peach State. Georgia Power's plan was unanimously approved by the Georgia Public Service Commission (GPSC) (Atlanta, Georgia). The PV generators will be built at Fort Benning, Fort Gordon and Fort Stewart. As yet, they have not been named. Construction is scheduled to begin next spring for all three generators. Each is expected to cost about $90 million. The Fort Benning unit is scheduled to be operating by April 2016. The Fort Gordon and Fort Stewart units are scheduled to be operating by September 2016, according to Georgia Power spokesman John Kraft. That makes all three units eligible for the federal Production Tax Credit, which is about 2.3 cents for each kilowatt-hour of electricity generated for up to 10 years.

The facilities, collectively dubbed the "3x30" project, are expected to be the largest solar generation installations operating on any U.S. military base. Kraft said Georgia Power will not disclose the estimated construction costs for the three units. AMEC Foster Wheeler PLC (NYSE:AMFW) (London, England) will provide engineering, procurement and construction (EPC) services for the Fort Benning project, while PowerSecure International Incorporated (NYSE:POWR) (Wake Forest, North Carolina) will be the EPC firm for the Fort Gordon and Fort Stewart projects.

"Today is an important day for Georgia," GPSC Commissioner Lauren "Bubba" McDonald said at a late-October a news conference at the State Capitol announcing the GPSC decision. "These facilities will further promote the advancement of solar energy in Georgia while at the same time meeting the military's renewable energy goals."

"Not only is this power for today but this is power for the future and the right kind of power," added Major General Aycock, director of operations for the Army's office of the chief of staff for installation management. "This will ensure that Fort Benning, Fort Stewart and Fort Gordon have the energy they need to accomplish their mission."

In a filing earlier this year with the GPSC, Georgia Power sought to build the three PV facilities pursuant to the renewable action plan that is part of the utility's 2007 Integrated Resources Plan (IRP). The GPSC has required that any Georgia Power PV projects be equal to or less than the utility's avoided costs, to prevent upward pressure on electric rates. The projects also will contribute towards the Army's mandates regarding renewable energy and energy security.

Branches of the armed forces have been increasing their use of renewable energy, in part to increase battlefield logistical flexibility, lower fuel costs and minimize threats to soldiers. For more on that, see September 16, 2011, article - U.S. Army's Green Initiative Kicks Off, Seeks $7.1 Billion in Renewable Energy Projects and July 11, 2011, article - Pentagon Spending on Renewable Energy to Jump $25 Billion by 2030.

"These contracts are an important step forward in what we've been trying to do with solar," Georgia Power spokesman Kraft said in an interview. "There's been a dramatic increase in the cost-effectiveness of solar power. We're been trying to do solar right--as part of a diversified energy mix that is reliable and affordable and that does not put upward pressure on electric rates."

Georgia Power has been increasing its renewable energy portfolio in recent years. The utility plans to have more than 900 MW of solar power operating by year-end 2016, Kraft told Industrial Info. That sum includes the three Army facilities, Kraft said. For more on Georgia Power's expansion of it solar portfolio, see February 11, 2014, article - Georgia Power Company Wants to Become Greener Faster and June 13, 2013, article - Georgia Power Greens Generation Portfolio, but Hears Louder Calls for Solar.

Georgia Power's investments in renewable energy have helped make the Peach State a national clean energy leader, according to research conducted by The Pew Charitable Trusts. State and federal policies have helped to make the Peach State the fastest-growing solar market in the country, the research found.

The state of Georgia attracted $666 million in private clean-energy investments from 2009 to 2013 and those investments will generate about $4.4 billion of economic benefits over the next decade, the group said. Hydropower and biomass currently represent the largest installed capacity of renewable energy in the state, with 2 gigawatts and 765 megawatts, respectively, but solar power is the fastest-growing technology. Solar power is projected to increase by 535% between 2014 and 2023. Georgia's installations represented 3% of all new clean energy capacity additions in the United States in 2013, Pew noted.

"Solar is more affordable and efficient than ever, and there are several reasons for this continuing trend," said James Marlow, president of Radiance Solar in Atlanta, who spoke on a November web conference with representative of The Pew Charitable Trusts. "The cost of solar equipment is much lower, tax incentives now capture the total system installation costs, and the state's utility industry now sees solar as a flexible, affordable addition to its electric generation resources."

Although Georgia does not have a renewable portfolio standard (RPS), it does foster clean energy policies that have spurred economic growth, most prominently in solar power, the Pew research found.

"When people talk about state leaders in solar power, Georgia has traditionally not been seen as a leader, but that is changing," said Brock Ramey, Industrial Info's research manager for North American Power. "What's so important about how Georgia Power is expanding its solar power portfolio is that any new generation will not exceed the utility's avoided cost. So they're not just throwing money at something that's politically trendy. These are sober, cost-effective investments in renewable energy."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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