March 3 (Reuters) - Utility Southern Co's Alabama

unit said on Monday it will develop a 150 megawatt (MW)

utility-scale battery energy storage system (BESS) on the site

of its former coal-fired power plant in Walker County.

CONTEXT

The new Gorgas Battery Facility will house lithium ion

phosphate batteries that will have a two-hour duration.

Construction is expected to begin this year and be completed by

2027.

The seven-acre facility will be designed as a standalone

system that will connect to and charge directly from the

electric grid, Alabama Power added.

WHY IT'S IMPORTANT

With companies and countries increasingly moving to clean

energy to combat climate change, BESSs are becoming increasingly

more important.

These systems can store excess energy generated from

renewable sources, which can be particularly useful for

optimizing energy usage during times of low power generation or

high demand.

Batteries have the potential to help integrate additional

clean energy resources into the company's power generation mix,

providing complementary technology for variable,

weather-dependent resources, such as solar.

KEY QUOTE

"Batteries can charge when energy costs are lower and

discharge when energy costs are higher, helping keep costs down.

They can also supply energy to our system quickly in response to

changing conditions," said Brandon Dillard, senior vice

president of Alabama Power's generating fleet.