Alabama Power Accepting Proposals for On-Demand Energy Resources to Support State’s Growing Energy Needs
BIRMINGHAM, AL -- Alabama Power today issued a request for proposals (RFP) seeking on-demand (dispatchable) capacity resources of 100 megawatts or larger to support reliable, cost-effective service for its 1.5 million customers. Proposals are due Jan. 16, 2026.
The RFP is part of Alabama Power’s long-term planning process to ensure dependable electricity through all seasons — especially during winter, which has become the period of highest demand on the system.
“Alabama is growing, and our customers are relying on electricity for more of what they do — from heating and cooling to advanced manufacturing and digital workloads,” said Brandon Dillard, Alabama Power’s senior vice president of Resource Strategy and Stakeholder Engagement. “This RFP is about adding on-demand capacity that meets our reliability standards and makes economic sense for our customers.”
Eligibility paths:
Thermal generation via power purchase agreements or asset purchase and sale agreements
Standalone battery energy storage systems via energy storage agreements or build-transfer agreements
Hybrid renewable-plus-storage resources (e.g., solar-plus-storage) via energy storage agreements or build-transfer agreements
All projects must meet applicable federal and state environmental standards and permitting requirements.
Contract terms may range from five to 25 years. Multiple project submissions are welcome. Projects must be able to serve summer and winter capacity needs by winter 2032, with the option to begin service as early as 2028 if doing so is cost-effective.
Proposals will be evaluated for reliability contribution (measured by effective load carrying capability), total life-cycle cost to customers, fuel and market risk, and long-term value under Alabama Public Service Commission oversight. Consistent with company practice, new large-load customers pay costs directly attributable to their service, helping prevent cost-shifts to other customers.
Key dates:
Notice of intent to bid due by 5 p.m. CST on Dec. 5, 2025.
Final proposals due by 5 p.m. CST on Jan. 16, 2026.
For more information, visit www.alabamapower.com/RFP2025.
About Alabama Power
Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), provides reliable, affordable electricity to 1.5 million customers across the state. Learn more at www.alabamapower.com.
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SOURCE: Alabama Power