Energy company Constellation and cable manufacturer Southwire have entered a long-term renewable energy certificate (REC) purchase agreement that will result in a 72-MW expansion on a Texas solar project.
Southwire will match approximately 33% of its annual electricity use with RECs sourced from the Rayos del Sol solar project in Cameron County, Texas, each REC representing 1 MWh of solar energy generated by the solar project and delivered onto the electricity 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 to install visible signs of this commitment, including electric vehicle charging stations and solar panels at some of our facilities,” said Burt Fealing, EVP and general counsel, Southwire. “We are pleased to collaborate with Constellation — in addition to customers, suppliers and academic institutions — to further drive sustainability across our footprint and support the transition to a low-carbon economy. Although we can achieve a lot on our own, by working with others, we can make a broader, more sustainable impact.”
To simplify the purchase, Southwire will use a renewable purchasing structure that builds off of another Constellation offering, the Constellation Offsite Renewables (CORe) retail power product. Constellation’s CORe product enables the development of and increases businesses’ access to, new-build renewable energy projects by removing the hurdles associated with traditional offsite power purchase agreements.
The structure employed for Southwire has similar benefits but is not tied to a Constellation retail power agreement. This allows Southwire to efficiently address the needs of its decentralized locations, many of which are in fully regulated retail energy markets. Constellation’s approximately nine-year agreement with Southwire begins in April 2022.
“This innovative product structure will enable Southwire to receive renewable energy certificates (RECs) created by Rayos del Sol at a known contract price without facing the hourly settlement price associated with virtual power purchase agreements,” said Mark Huston, president of Constellation’s National Retail Business. “We commend Southwire on its aggressive climate change goals and are proud to offer a clean energy solution to help them deliver on their genuine commitment to sustainability.”
News item from Constellation