One of the largest solar power arrays in Alabama will take shape about 15 miles outside Montgomery over the next two years, as the Alabama Municipal Electric Authority today announced a $125 million energy generation project.

The plan will involve more than 350,000 solar panels on 800 acres and is projected to be completed by 2021.

Alabama Municipal Electric Authority (AMEA) and California-based Lightsource BP announced the project today. Lightsource BP will finance, develop, build, own, and operate the solar facility and will deliver energy to AMEA under a 20-year power purchase agreement.

The solar array is expected to generate enough electricity to power more than 20,000 homes. AMEA provides power for Alexander City, Dothan, Fairhope, Foley, LaFayette, Lanett, Luverne, Opelika, Piedmont, Sylacauga, and Tuskegee.

The project is nothing new for Lightsource BP, which has executed solar power purchase agreements with other public agencies, such as the Sacramento Municipal Utility District, Continental Divide Electric Cooperative, Mid-Kansas Electric Company, and Penn State.

Montgomery County Commission Chair Elton Dean called the solar array "a major economic development project for the rural part of our county.”

AMEA started studying solar energy three years ago, and has completed about eight solar research projects in its member communities.

Kevin Smith, American CEO of Lightsource BP, said Alabama “offers tremendous potential for large-scale solar, and our efforts here underscore the exciting opportunity to develop clean, low-cost, and low-impact renewable energy in the region.”

AMEA’s President and CEO Fred Clark said the power generated by the solar facility, once it’s up and operational, will account for about 10 percent of AMEA’s maximum output. AMEA’s power is transmitted by contract through Southern Co. Its entire portfolio includes nuclear, coal, hydro and natural gas generated power.

The solar energy will have a fixed price for 20 years, and will act as a hedge against price volatility in the natural gas market. Over 20 years, Clark said, the company looks to save a minimum of $40 million.

“Today this resource is cheaper than current goal and natural gas resources,” Clark said. “It allows us to build more stability and more diversity in our energy portfolio.”