Southwire signs offsite renewable agreement with Constellation to support Solar Energy
BALTIMORE (July 14, 2021) — Constellation, a leading competitive energy and energy solutions provider, and Southwire, one of the world’s leading manufacturers of wire and cable, tools, components and assembled solutions, announced today that they have entered into a long-term renewable energy certificate (REC) purchase agreement through which Southwire will match approximately 33% its annual electricity use with RECs sourced from the Rayos del Sol solar project in Cameron County, Texas. Each REC represents the environmental attributes associated with one megawatt-hour of solar energy generated by the Rayos del Sol project and delivered onto the electricity grid.
As a result of Southwire’s long-term commitment, Constellation has entered into a separate agreement with 174 Power Global and TotalEnergies — co-owners of Rayos del Sol — to support a 72-MW expansion of the project. (Constellation signed a 108-MW agreement in 2020 to supply three commercial customers via Rayos del Sol.) The expansion is expected to achieve commercial operation by April 2022.
Southwire’s commitment is expected to help reduce carbon dioxide emissions associated with its energy use by more than 80,000 metric tons each year, the equivalent of removing more than 17,000 passenger vehicles from the road in one year, according to U.S. Environmental Protection Agency estimates.
The deal will also contribute to Southwire’s aggressive carbon zero goal to eliminate or offset all its scope 1 and 2 GHG emissions by 2025.
“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 an innovative renewable purchasing structure that builds off of another Constellation offering, 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 significant hurdles associated with traditional offsite power purchase agreements (PPAs). 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.”
Constellation is a leading competitive retail supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. Constellation’s family of retail businesses serves approximately 2 million residential, public sector and business customers, including more than three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (NASDAQ: EXC), the nation’s leading competitive energy provider, with 2020 revenues of approximately $33 billion, and more than 30,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.
A leader in technology and innovation, Southwire Company, LLC is one of North America’s largest wire and cable producers and an emerging influence in the industrial electrical space. Southwire and its subsidiaries manufacture building wire and cable, utility products, metal-clad cable, portable and electronic cord products, OEM wire products and engineered products. In addition, Southwire supplies assembled products, contractor equipment and hand tools. For more on Southwire’s products, its community involvement and its vision of sustainability, visit www.southwire.com.
About 174 Power Global
174 Power Global is headquartered in Irvine, Calif., and is a leading solar energy company that is wholly owned by the Hanwha Group. With deep expertise across the full spectrum of the project development cycle, 174 Power Global works closely with landowners, local communities, financial investors and other partners to build highly productive, utility scale solar power plants throughout North America. Since its formation in 2017, 174 Power Global has signed nearly two gigawatts of power purchase agreements and has built an extensive project development pipeline. The Company was ranked as the 2018 #1 solar project development company in the United States by Wood Mackenzie. 174 Power Global’s name was inspired by the 174 petawatts of power the earth receives from the sun per day. For more information, visit: www.174powerglobal.com.