Energy Procurement, Utilities, Finance, Industrial, Solar, Sourcing Renewables  -  June 22, 2016

Southern Power completes €1.1B green bond issuance to accelerate renewable projects

Continuing on plans to accelerate ownership of renewable energy generation, Southern Co. subsidiary Southern Power has completed the issuance of €1.1 billion aggregate principal amount of green bonds. 

An amount equal to the U.S. dollar equivalent of the net proceeds of the offering, which shakes out to about $1.2 billion, will be allocated to renewable energy generation projects, including financing of, or investments in, solar and wind power generation facilities located in the U.S., Southern said in a June 20 news release.  Southern Power is the utility holding company's unregulated generation arm, which has been ramping up its clean energy services to commercial and industrial customers in recent months. 

The green bond issuance, Southern said, underscores the company's commitment to innovation as its system further develops the full portfolio of energy resources. Green bonds are classified as "green" for the requirement that capital raised through them be exclusively used for environment-friendly investments. The emerging asset class has been viewed as a fast-growing source of low-cost debt for renewable energy and energy efficiency programs.

"Southern Power is an industry leader in growing renewable energy projects across the United States," Southern Power President and CEO Buzz Miller said in the news release. "Our company's issuance of Green Bonds builds on our commitment to sustainable generation as America's premier wholesale energy partner."

In a separate offering last year, Southern Power completed the issuance of $1 billion aggregate principal amount of green bonds in November 2015. 

Southern Co. Chairman and CEO Tom Fanning said in April that Southern Power will continue to seek growth through renewable asset acquisitions, wind in particular.

"I bet you we'll be bigger than that in '17 and '18," Southern Chairman, President and CEO Tom Fanning reportedly said during the company's first-quarter earnings call. "You'll still see solar. You will see more wind than we've traditionally done in the past would be my guess."

Southern Power, according to the news release, now boasts more than 2,000 MW of generating capacity owned, under development or under contract. It has gotten to that level through the strategic development or acquisition of 26 solar, wind and biomass projects across the U.S. 

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