REC agreement results in 72-MW expansion of Texas solar project
energy company Zodiac sign and cable manufacturer south wire have entered into a long-term renewable energy certificate purchase agreement (REC) that will result in a 72 MW expansion on a Texas solar project.
Southwire will match approximately 33% of its annual electricity usage with RECs sourced from the Rayos del Sol solar project in Cameron County, Texas, with each REC representing 1 MWh of solar energy generated by the solar project and fed to the grid.
“In July 2020, we announced our goal to eliminate or offset all greenhouse gas emissions from our operations, and since then we’ve started installing visible signs of this commitment, including electric vehicle charging stations and solar panels on some of our facilities,” said Burt Fealing, EVP and general counsel of Southwire. “We are excited to partner with Constellation – alongside customers, suppliers and academic institutions – to further drive sustainability in our footprint and support the transition to a low-carbon economy. While we can achieve a lot ourselves, working together can help make a broader, more sustainable impact with others.”
To simplify purchasing, Southwire will use a renewable procurement structure that builds on another Constellation offering, the Constellation Offsite Renewables (CORe) retail power product. Constellation’s CORe product enables the development and increase of companies’ access to new-build renewable energy projects by removing the hurdles associated with traditional off-site power purchase agreements.
The structure used for Southwire has similar benefits but is not bound by a Constellation electricity sales agreement. This allows Southwire to efficiently address the needs of its decentralized locations, many of which are located in fully regulated retail energy markets. Constellation’s approximately nine-year deal with Southwire will begin in April 2022.
“This innovative product structure allows Southwire to receive Renewable Energy Certificates (RECs) created by Rayos del Sol at a known contract price without the hourly settlement price associated with virtual power purchase agreements,” said Mark Huston, president of Constellation’s National Retail Business. “We commend Southwire for its aggressive climate change goals and are proud to offer a clean energy solution to help them deliver on their genuine commitment to sustainability.”
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