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Alabama Power to build state's first utility-scale battery storage system on retired power plant site

1. Alabama Power will develop a 150 MW battery storage facility. 2. The facility honors Plant Gorgas' legacy and supports sustainable solutions. 3. Construction begins in 2025, with completion expected by 2027. 4. Battery storage will enhance grid reliability and integrate renewable energy. 5. This project reinforces Alabama Power's commitment to community support.

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Why Bullish?

Investments in renewable technologies typically increase long-term value and market confidence. Similar projects in the past have boosted stock prices of utilities focused on clean energy.

How important is it?

The facility's development reflects a strategic shift towards renewable energy, likely improving long-term investor sentiment. Sustainability projects are increasingly relevant in current market dynamics, impacting SO positively.

Why Long Term?

The completion of the facility in 2027 will enhance SO's renewable portfolio, driving long-term growth. Historical investments in sustainability often yield benefits over several years.

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150 MW facility to provide reserve power for Alabamians, /PRNewswire/ -- Alabama Power will develop the state's first utility-scale battery energy storage system (BESS) on the former Plant Gorgas site in Walker County, which reliably powered Alabama for more than a century. 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. Digital rendering of Alabama Power's scale battery energy storage system (BESS) on former Plant Gorgas site. "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 Alabama since 1917." 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 Walker County hold a special place in our company's history," said Jill Stork, vice president of Western Division. "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."About Alabama PowerAlabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), provides reliable, affordable electricity to 1.5 million customers across the state. Learn more at www.alabamapower.com. 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.SOURCE Alabama Power WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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