Arizona Public Service (APS) has signed agreements to add nearly 7,300 MW of renewable power, battery energy storage and natural gas to its energy mix to meet the state's growing demand for energy.
The addition is enough electricity to function nearly 1.4 million air conditioners at the same time. The deals, signed through its 2023 All Source Request for Proposals (ASRFP), will add new generation resources and expand existing power plants and power purchase agreements.
The ASRFP is a market solicitation tool designed to allow respondents to submit project proposals for a broad range of technologies, with proposals ranked and scored against one another according to their customer value.
“Most importantly, this portfolio will provide reliable, cost-competitive electricity, with 93% of this supply coming directly from clean energy technologies,” said Brian Cole, APS Vice President of Resource Management.
Through APS’s 2023 ASRFP, a diverse mix of projects will be operational by 2026. The projects include:
Solar Power
- New APS solar plant in development: The Ironwood Solar Plant in Yuma County will deliver nearly 170 MW of clean energy to customers. The plant’s construction has started and is anticipated to be in service in 2026.
- More solar power added: APS contracted for nearly 2,480 MW of solar resources through power purchase agreements that will continue to provide customers with clean and reliable electricity.
Battery Energy Storage
- Energy storage slated for APS solar plant: At the Agave Solar Plant in Maricopa County, more than 400,000 solar panels began serving customers with energy from the sun in 2023. Construction is under progress to pair 150 MW of BESS with this facility to deliver solar power after sunset to customers.
- More energy storage through power purchase agreements: When solar power is abundant, storage units will be capable of capturing nearly 3,460 MW of energy. Grid operators can release it in the evening hours when customer demand is highest.
Wind Power
- Leveraging wind power from northern Arizona: APS secured more than 500 MW of additional wind power to serve customers. The wind power is generated in Navajo County.
Natural Gas
- Expanding current power plants to strengthen reliable service: The Sundance Power Plant in Pinal County will add two new units to provide 90 MW of flexible power, and planned expansions at the Redhawk Power Plant, in Maricopa County, will bring approximately 400 MW of energy.
- APS is also expanding an existing power purchase agreement by 30 MW to continue to provide customers with reliable, low-cost service.
APS resource planners expect peak customer demand to grow to more than 13,000 MW by 2038. Customer needs will increase by 60% in 14 years and APS is conducting a 2024 ASRFP to prepare for the growing demand.
The ASRFP is open to all technologies, and APS is looking for approximately 2,000 MW of resources. APS is targeting projects, which will be able to deliver service as early as 2028, and will explore longer range opportunities for service into the 2030s.
Project proposals will be reviewed through a transparent process monitored by an independent third party and will be evaluated against several customer-focused benchmarks, including reliability and cost-competitiveness.
