Southern Company’s SO Alabama Power unit is set to revolutionize the state's energy landscape with the development of first-ever utility-scale Battery Energy Storage System (“BESS”). Located on the historic Plant Gorgas site in Walker County, this pioneering facility will significantly boost Alabama's grid reliability and provide an innovative solution for integrating clean energy into the state's power infrastructure.
The Gorgas Battery Facility represents a monumental step in modernizing SO’s subsidiary energy grid. With the capacity to store 150 MW of electricity, the facility will have the power to meet the needs of approximately 9,000 homes. This scale of storage will allow SO’s unit to better manage the state’s electricity demands, ensuring a reliable and sustainable energy supply. The ability to store excess electricity generated during periods of low demand, only to release it when energy consumption peaks, is a critical step in enhancing grid stability and optimizing the delivery of power to customers across Alabama.
For over a century, Plant Gorgas has powered Alabama. Now, the Gorgas Battery Facility will modernize the site with advanced energy storage technology, supporting SO’s unit Power’s commitment to sustainability and community development.
The heart of the Gorgas Battery Facility lies in its lithium-ion phosphate batteries, a technology known for high energy density, durability and cost-effectiveness. These advanced batteries will store electricity for up to two hours, with a rapid recharge time of just more than two hours. This allows electricity-providing subsidiaries of SO to efficiently balance supply and demand in real time, offering significant flexibility in its operations.
Brandon Dillard, senior VP of Generation at Alabama Power, explains that battery storage allows quick adjustments to changes in energy demand. Batteries charge when energy is cheaper and discharge when it is more expensive, helping keep costs low. This quick response is crucial for grid stability during high demand or disruptions.
Battery energy storage plays an increasingly vital role in managing electricity grids, particularly as the demand for renewable energy sources grows. With more reliance on solar power and other variable energy sources, maintaining grid stability can become a challenge. The Gorgas Battery Facility will help mitigate this challenge by storing excess energy generated during sunny periods and releasing it when the sun is not shining. This ensures that Alabama’s power grid can accommodate a larger share of clean energy without sacrificing reliability or increasing costs.
The flexibility of battery storage systems allows SO’s division to manage the complex demands of a modern energy grid. These systems make it possible to capture and store low-cost electricity generated during off-peak hours, which can then be used during peak demand times, when electricity prices are higher. This not only helps to lower energy costs but also reduces the need for more expensive, traditional energy sources that may have a larger environmental footprint.
As SO’s unit continues to transit to a cleaner energy mix, the Gorgas Battery Facility will play a crucial role in integrating additional renewable energy resources into the grid. The facility’s ability to store energy generated from solar power and other renewables enables SO’s unit to utilize these clean sources more effectively. This capability aligns with the company's long-term goals of reducing carbon emissions and enhancing sustainability across the state.
The decision to incorporate energy storage systems like the Gorgas Battery Facility is part of a larger strategy to build a stronger, smarter energy grid. As weather patterns become more unpredictable and renewable energy sources become more prevalent, systems like the Gorgas Battery Facility will ensure that SO’s unit remains well-positioned to meet both present and future energy demands.
The development of the Gorgas Battery Facility is a significant milestone in Alabama Power’s ongoing efforts to build a sustainable future for the state. The decision to repurpose the former Plant Gorgas site demonstrates Alabama Power’s commitment to supporting the communities it serves while ensuring that energy solutions are aligned with environmental sustainability.
Jill Stork, vice president of Alabama Power’s Western Division, emphasized its ongoing dedication to these communities: "The reuse of this site reaffirms our support of the communities we have long served, ensuring sustainable solutions that honor our past while looking to the future." By investing in cutting-edge technologies like the Gorgas Battery Facility, SO’s unit is creating lasting value for local residents and ensuring that the state's energy infrastructure remains robust and adaptable.
The Gorgas Battery Facility is not just a single project. It represents the future of energy storage and grid management in Alabama. Scheduled to break ground in 2025 and with completion expected in 2027, this facility will be a cornerstone in Alabama Power’s efforts to modernize the state’s electricity grid. The insights gained from this facility will be invaluable as the company continues to explore new ways to integrate battery storage technology into its operations and develop innovative solutions to address energy challenges.
As the facility comes online, it will provide essential data that will guide the next generation of energy storage technologies, helping to ensure that Alabama Power’s grid is both reliable and resilient. Moreover, the Gorgas Battery Facility will serve as a model for other utilities across the nation, demonstrating how energy storage solutions can support cleaner, more efficient and sustainable energy systems.
Currently, SO carries a Zacks Rank #3 (Hold). Investors interested in the utility sector might look at some better-ranked stocks like Ameren Corporation AEE, CMS Energy Corporation CMS and Entergy Corporation ETR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AEE is worth approximately $27.41 billion. It currently pays a dividend of $2.68 per share, or 2.64% on an annual basis.
Ameren Corporation, a U.S. public utility holding company, provides services through its subsidiaries across four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas and Ameren Transmission.
CMS is worth approximately $21.83 billion. It currently pays a dividend of $2.17 per share, or 2.97% on an annual basis.
CMS Energy Corporation, based in Michigan, provides electricity and natural gas through its Electric and Gas Utility segments, serving millions of customers. The company generates electricity from diverse sources, including renewables and manages extensive distribution networks for both electricity and natural gas.
ETR is worth approximately $37.58 billion. It currently pays a dividend of $2.40 per share, or 2.75% on an annual basis.
Entergy Corporation, headquartered in New Orleans, generates and distributes electricity and natural gas across Arkansas, Louisiana, Mississippi and Texas, serving three million customers. It utilizes a diverse energy portfolio, including nuclear, gas, coal, hydro and solar, to achieve approximately 25,000 megawatts of generating capacity.
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