ADDING and REPLACING APS Secures Its Largest-Ever Energy Supply to Reliably Serve Customers
Arizona Public Service (APS) has announced its largest-ever energy supply addition, securing nearly 7,300 megawatts (MW) of power through various agreements. The portfolio includes 2,480 MW of solar resources, 3,460 MW of battery storage, 500 MW of wind power, and natural gas expansions. The Ironwood Solar Plant will deliver 170 MW of clean energy by 2026, while the Agave Solar Plant will add 150 MW of battery storage. Natural gas expansions include 90 MW at Sundance Power Plant and 400 MW at Redhawk Power Plant. 93% of this supply will come from clean energy technologies. APS expects peak customer demand to grow to over 13,000 MW by 2038.
Arizona Public Service (APS) ha annunciato il suo più grande incremento nella capacità di fornitura di energia, garantendo quasi 7.300 megawatt (MW) di energia attraverso vari accordi. Il portafoglio include 2.480 MW di risorse solari, 3.460 MW di accumulo di energia tramite batterie, 500 MW di energia eolica e espansioni del gas naturale. L'impianto solare Ironwood fornirà 170 MW di energia pulita entro il 2026, mentre l'impianto solare Agave aggiungerà 150 MW di accumulo di energia. Le espansioni del gas naturale comprendono 90 MW presso la centrale Sundance e 400 MW presso la centrale Redhawk. Il 93% di questa fornitura proviene da tecnologie per l'energia pulita. APS prevede che la domanda massima dei clienti crescerà a oltre 13.000 MW entro il 2038.
Arizona Public Service (APS) ha anunciado su mayor adición de capacidad de suministro de energía, asegurando casi 7,300 megavatios (MW) a través de varios acuerdos. El portafolio incluye 2,480 MW de recursos solares, 3,460 MW de almacenamiento en baterías, 500 MW de energía eólica y expansiones de gas natural. La planta solar Ironwood entregará 170 MW de energía limpia para 2026, mientras que la planta solar Agave añadirá 150 MW de almacenamiento en baterías. Las expansiones de gas natural comprenden 90 MW en la planta de energía Sundance y 400 MW en la planta de energía Redhawk. El 93% de este suministro provendrá de tecnologías de energía limpia. APS espera que la demanda máxima de los clientes crezca a más de 13,000 MW para 2038.
애리조나 퍼블릭 서비스 (APS)가 역대 최대의 에너지 공급 추가를 발표하며 다양한 계약을 통해 거의 7,300 메가와트 (MW)의 전력을 확보했습니다. 이 포트폴리오는 2,480 MW의 태양광 자원, 3,460 MW의 배터리 저장, 500 MW의 풍력 및 천연가스 확장을 포함합니다. 아이언우드 태양광 발전소는 2026년까지 170 MW의 청정 에너지를 제공할 예정이며, 아가베 태양광 발전소는 150 MW의 배터리 저장을 추가할 것입니다. 천연가스 확장에는 선데이 솔라 발전소에서 90 MW 및 레드호크 발전소에서 400 MW가 포함됩니다. 93%의 공급량은 청정 에너지 기술에서 올 것입니다. APS는 고객의 최대 수요가 2038년까지 13,000 MW를 초과할 것으로 예상합니다.
Arizona Public Service (APS) a annoncé sa plus grande augmentation de fourniture d'énergie, sécurisant près de 7 300 mégawatts (MW) grâce à divers accords. Le portefeuille comprend 2 480 MW de ressources solaires, 3 460 MW de stockage par batteries, 500 MW d'énergie éolienne et des extensions de gaz naturel. La centrale solaire Ironwood fournira 170 MW d'énergie propre d'ici 2026, tandis que la centrale solaire Agave ajoutera 150 MW de stockage par batteries. Les extensions de gaz naturel comprennent 90 MW à la centrale Sundance et 400 MW à la centrale Redhawk. 93% de cette offre proviendra de technologies d'énergie propre. APS s'attend à ce que la demande maximale des clients atteigne plus de 13 000 MW d'ici 2038.
Arizona Public Service (APS) hat seine größte Energieliefererweiterung angekündigt und fast 7.300 Megawatt (MW) an Leistung durch verschiedene Vereinbarungen gesichert. Das Portfolio umfasst 2.480 MW an Solarressourcen, 3.460 MW an Batteriespeichern, 500 MW an Windkraft und Erweiterungen im Bereich Erdgas. Das Ironwood Solarwerk wird bis 2026 170 MW saubere Energie liefern, während das Agave Solarwerk 150 MW Batteriespeicher hinzufügen wird. Die Erdgas-Erweiterungen umfassen 90 MW im Sundance-Kraftwerk und 400 MW im Redhawk-Kraftwerk. 93% dieser Versorgung wird aus Technologien für saubere Energie stammen. APS erwartet, dass die Spitzenlastnachfrage der Kunden bis 2038 auf über 13.000 MW steigen wird.
- Secured 7,300 MW of new power sources, with 93% from clean energy technologies
- Addition of 2,480 MW of solar resources through power purchase agreements
- Integration of 3,460 MW of battery storage capacity
- Secured 500 MW of additional wind power from Navajo County
- Strategic expansion of natural gas capacity to support renewable integration
- Significant capital investment required for infrastructure expansion
- Expected 60% increase in peak customer demand by 2038 requiring additional resources
- Continued dependence on natural gas for reliability
Insights
This massive 7,300 MW energy procurement represents a transformative expansion for APS, with
The timing is important as APS projects peak demand to surge by
This procurement marks a significant positive catalyst for PNW's long-term growth strategy. The diverse energy mix positions APS to capitalize on Arizona's rapid population growth while managing costs and regulatory compliance. The emphasis on clean energy aligns with ESG investment trends and regulatory direction, while the natural gas component provides operational flexibility and reliability.
The upcoming 2024 RFP for an additional 2,000 MW indicates strong continued growth trajectory. This expansion supports APS's market position as Arizona's primary utility provider while demonstrating proactive capacity planning for future demand growth in their service territory.
Enough electricity to power nearly 1.4 million air conditioners at the same time
The updated release reads:
APS SECURES ITS LARGEST-EVER ENERGY SUPPLY TO RELIABLY SERVE CUSTOMERS
Enough electricity to power nearly 1.4 million air conditioners at the same time
Arizona Public Service (APS) has signed agreements to add new energy supplies to its energy mix – APS’s largest-ever planned addition of new power sources. In all, APS will add nearly 7,300 megawatts (MW) of renewable power, battery energy storage and natural gas to meet the state's growing demand for energy. Picture this, that’s enough electricity to run nearly 1.4 million air conditioners at the same time. The deals, inked through its 2023 All Source Request for Proposals (ASRFP), will add new generation resources and expand existing power plants and power purchase agreements.
“With almost 7,300 MW of energy signed, this will be the largest energy supply we’ve ever procured through an RFP for APS customers. Most importantly, this portfolio will provide reliable, cost-competitive electricity, with
What’s in store for APS customers?
Through APS’s 2023 ASRFP, customers can anticipate a diverse mix of projects in operation as soon as 2026. The ASRFP is a unique market solicitation tool designed to allow respondents to submit project proposals for a broad range of technologies, with proposals then ranked and scored against one another according to their customer value. Projects include:
Solar Power
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New APS solar plant in development: The Ironwood Solar Plant will deliver nearly 170 MW of clean energy to customers. Located in
Yuma County , the plant’s construction has started and is anticipated to be in service in 2026. - More solar power added: As an addition to APS’s existing solar portfolio and strong customer rooftop solar, 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
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Energy storage slated for APS solar plant: At the Agave Solar Plant, located in
Maricopa County , more than 400,000 solar panels began serving customers with energy from the sun in 2023. Construction is underway to pair 150 MW of new battery energy storage 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
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Leveraging wind power from northern
Arizona : APS secured more than 500 MW of additional wind power to serve customers. The wind power is generated inNavajo County .
Natural Gas
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Expanding current power plants to strengthen reliable service: With Arizona’s continued record growth and extreme summer heat, natural gas, available on-demand 24/7, will continue to be an important part of keeping air conditioners running. 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, inMaricopa 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. These natural gas additions are critical partners to the large quantities of solar and battery energy storage that will be added to APS’s energy portfolio.
What’s next for APS’s energy grid and resource mix?
APS resource planners expect peak customer demand to grow to more than 13,000 MW by 2038. For perspective, it took APS 140 years to reach 8,200 MW of peak demand, and customer needs will increase by
This ASRFP is open to all technologies, and APS is seeking approximately 2,000 MW of resources. APS is targeting projects that can be in service beginning as early as 2028 and will explore longer range opportunities that can be in 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. For more information on how to submit a project proposal, visit aps.com/rfp.
APS serves approximately 1.4 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering reliable, affordable and clean energy in the Southwest. The company is committed to serving customers with
Forward-Looking Statements
This news release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. Several factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:
- the current economic environment and its effects, such as lower economic growth, a tight labor market, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects;
- the ability of APS to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;
- unforeseen changes in applicable law and regulations;
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the ability of APS to achieve its clean energy goals (including a goal by 2050 of
100% clean, carbon-free electricity); and - general economic conditions, including inflation rates, monetary fluctuations, and supply chain constraints.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120776316/en/
Media Contact: Yessica del Rincon
480-209-8513
yessica.delrincon@aps.com
Website: aps.com/newsroom
Source: Arizona Public Service
FAQ
How many megawatts of new energy supply did APS (PNW) secure in its 2023 procurement?
What percentage of APS's (PNW) new energy supply will come from clean energy sources?
When will the Ironwood Solar Plant begin operations for APS (PNW)?
What is APS's (PNW) projected peak customer demand by 2038?
