The utility will secure 202MW energy from the farm with state’s public service commission also granting its approval for the 20-year PPA.
Commenting on the agreement Alabama Power resource planning director John Kelly remarked that the utility is consistently seeking environmental friendly sources of power.
Alabama Power and TradeWind had earlier signed a similar agreement for the Chisholm View wind farm in Oklahoma.
"These two agreements represent a win-win for the company and the people we serve," Kelley added.
The Buffalo Dunes wind farm is expected to cost $300m and will be operational in 2014.