The largest floating solar plant in the U.S. Southeast is coming to Fort Bragg, a military installation in North Carolina, as part of a $36 million contract with the Charlotte-based Duke Energy Corp, the company announced Wednesday.

Duke Energy’s contractor, Ameresco, Inc., is expected to begin building the plant in November. Once construction is completed, Fort Bragg will own and operate the 1.1-megawatt (MW) system, which will supplement power from the local grid and provide backup power during outages.

Floating solar currently makes up about 1 to 2 percent of the world’s solar capacity, and about 90 percent of the world’s capacity for it is in Asia. Researchers at the U.S. Department of Energy’s National Renewable Energy Laboratory estimate that installing the technology on more than 24,000 U.S. reservoirs could produce about 10 percent of the country’s annual electricity.

“As a leader in solar energy, we’re excited to bring this unique project to Fort Bragg,” Melisa Johns, vice president of Distributed Energy Solutions at Duke Energy, said in a press release. “This project takes a comprehensive look at the way energy is being used at Fort Bragg and will lead to more efficient energy use and significant cost savings.”

North Carolina ranks second in the nation for overall solar power capacity, and Duke Energy owns and operates 40 solar facilities in the state. The company’s contract will “focus on energy resilience and security at Fort Bragg: infrastructure modernization including lighting and water upgrades, heating, ventilation and air-conditioning and boiler system improvements,” the company said in the press release.

Shares of Duke Energy rose Tuesday after the Wall Street Journal reported that its peer, NextEra Energy, Inc. made a takeover approach of the company. Duke Energy also reported second-quarter earnings recently, seeing a decrease in revenue from a year prior but beating analyst estimates.

Earlier in September, Duke Energy announced an agreement with solar installers to create incentives for South Carolina residential solar customers. The company has previously taken on other solar projects, including those in states outside the Carolinas.

Shares of Duke Energy stock were trading at $88.98 Wednesday morning, up $6.57, or 7.97 percent.