March 3 (Reuters) - Utility Southern Co's SO.N Alabama unit said on Monday it will develop a 150 megawatt (MW) utility-scale battery energy storage system $(BESS)$ on the site of its former coal-fired power plant in Walker County.

CONTEXT

The new Gorgas Battery Facility will house lithium ion phosphate batteries that will have a two-hour duration. Construction is expected to begin this year and be completed by 2027.

The seven-acre facility will be designed as a standalone system that will connect to and charge directly from the electric grid, Alabama Power added.

WHY IT'S IMPORTANT

With companies and countries increasingly moving to clean energy to combat climate change, BESSs are becoming increasingly more important.

These systems can store excess energy generated from renewable sources, which can be particularly useful for optimizing energy usage during times of low power generation or high demand.

Batteries have the potential to help integrate additional clean energy resources into the company's power generation mix, providing complementary technology for variable, weather-dependent resources, such as solar.

KEY QUOTE

"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 Alabama Power’s generating fleet.

(Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid)

((Pooja.Menon@thomsonreuters.com;))