Issue link: http://alabamapower.uberflip.com/i/274792
Nearly a century after building its first hydroelectric dam along the Coosa River, Alabama Power continues to diversify its energy portfolio. R E S E A R C H A N D T E C H N O L O G Y From Water to Wind Energy 2 3 Since 2011, the company has signed power purchase contracts with the Oklahoma-based Chisholm View Wind Project and the Buffalo Dunes Wind Project in Kansas. By the end of next year, the two wind farms are expected to produce up to 404 megawatts of electricity (enough to power some 115,000 homes) — making the company one of the Southeast's leading purchasers of wind-generated energy. These contracts bring additional value to customers because the company owns the rights to all Renewable Energy Credits, or RECs, associated with the energy delivered. The company can retire the RECs when it serves customers directly with renewable energy, or it can sell the RECs to others, either bundled with energy or separately, and use the proceeds to offset other costs of service. The Power of Renewables In addition to wind, Alabama Power is also using sunlight — both directly and from plants — to provide clean, renewable energy. Solar The company is studying two types of solar energy: solar thermal and solar photovoltaics (PV). Solar thermal technology captures heat from the sun and collects and transfers it into a medium such as water for solar water heating. Solar PV uses PV cells to convert the sun's rays directly into electricity. These technologies are being tested in several demonstration projects across the Alabama Power service area to determine their viability under the Southeastern U.S. climate conditions and to determine the benefits and issues of using each of these technologies. Biomass Living plants convert sunlight into energy, which allows them to thrive. These plants can be used to make electricity. Plants and plant waste or "biomass" are collected, shredded and burned to generate electricity. This is referred to as biomass generation. Alabama Power has generated electricity from biomass materials, including switchgrass, a hardy native American prairie grass, and wood chips. The company also has biomass purchase power agreements with Alabama wood-processing companies that help provide energy and preserve local industries.