Southern Company subsidiary Southern Power today announced an agreement to acquire the company's largest renewable electric generating plant and first wind project – the 299-megawatt (MW) Kay Wind facility in Oklahoma – from Apex Clean Energy. The acquisition is expected to close in late 2015 upon successful completion of the project. 

"Southern Company first earned a reputation as a national leader in renewables through Southern Power's investments in utility-scale solar," said Southern Company Chairman, President and CEO Thomas A. Fanning. "Through the acquisition of the Kay Wind project – the Southern Company system's first wind facility and largest renewable energy project to date – we are further diversifying our generation portfolio by expanding to a region with abundant wind resources."

The facility is being built and will be operated and maintained by Apex Clean Energy. Blattner Energy, Inc. has constructed 12 facilities in Oklahoma and will serve as the engineering, procurement and construction contractor. The plant is expected to achieve commercial operation in the fourth quarter of 2015. 

Located in Kay County, Oklahoma, the project is expected to use 130 wind turbines manufactured by Siemens Energy, Inc. and will be capable of generating enough electricity to help meet the energy needs of approximately 100,000 average U.S. homes. 

The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under 20-year power purchase agreements with Westar Energy, Inc. in Kansas and Grand River Dam Authority (GRDA) in Oklahoma. Westar Energy, Inc. has contracted for approximately 199 MW and GRDA has contracted for approximately 100 MW. Both companies will have the option to either keep or sell the RECs.

Serving nearly 700,000 customers for more than a century, Westar Energy, Inc. is Kansas' largest electric utility. GRDA is Oklahoma'sstate-owned electric utility that directly or indirectly provides electricity to 75 of the 77 counties in the state.  

With the addition of the Kay Wind project, Southern Power will own more than 970 MW of renewable energy generating capacity that is either already in operation or under development. The company owns seven solar projects in partnership with Turner Renewable Energy and one solar project in partnership with First Solar. Southern Power also owns one of the nation's largest biomass power plants in Nacogdoches, Texas, and has recently announced plans to develop a 131-MW solar facility in Taylor County, Georgia, and two projects in south Georgia's Decatur County totaling 99 MW. 

The Kay Wind project fits Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.