APS Secures Its Largest-Ever Energy Supply to Reliably Serve Customers
Arizona Public Service (APS) has secured its largest-ever energy supply addition, signing agreements to add nearly 7,300 megawatts (MW) of power capacity. The mix includes renewable power, battery storage, and natural gas, with 93% coming from clean energy technologies. The portfolio includes the 170 MW Ironwood Solar Plant, 2,480 MW of solar resources through power purchase agreements, 3,460 MW of battery storage capacity, 500 MW of wind power, and approximately 520 MW of natural gas capacity expansions. Projects will begin operations as soon as 2026 to meet Arizona's growing energy demands, with peak customer demand expected to reach 13,000 MW by 2038.
Arizona Public Service (APS) ha ottenuto il più grande aumento della capacità energetica nella sua storia, firmando accordi per aggiungere quasi 7.300 megawatt (MW) di capacità. Il mix include energia rinnovabile, capacità di stoccaggio con batterie e gas naturale, con il 93% proveniente da tecnologie di energia pulita. Il portafoglio comprende l'impianto solare Ironwood da 170 MW, 2.480 MW di risorse solari attraverso contratti di acquisto di energia, 3.460 MW di capacità di stoccaggio di batterie, 500 MW di energia eolica e circa 520 MW di espansioni della capacità di gas naturale. I progetti inizieranno a operare già dal 2026 per soddisfare la crescente domanda energetica dell'Arizona, con una domanda massima dei clienti prevista di 13.000 MW entro il 2038.
Arizona Public Service (APS) ha asegurado la mayor adición de suministro energético de su historia, firmando acuerdos para agregar casi 7.300 megavatios (MW) de capacidad. La mezcla incluye energía renovable, almacenamiento en baterías y gas natural, con el 93% proveniente de tecnologías de energía limpia. El portafolio incluye la planta solar Ironwood de 170 MW, 2.480 MW de recursos solares a través de acuerdos de compra de energía, 3.460 MW de capacidad de almacenamiento de baterías, 500 MW de energía eólica y aproximadamente 520 MW de expansiones de capacidad de gas natural. Los proyectos comenzarán a operar tan pronto como en 2026 para satisfacer la creciente demanda de energía de Arizona, con una demanda máxima de clientes que se espera alcance 13.000 MW para 2038.
애리조나 공공 서비스(APS)는 역대 최대의 에너지 공급 추가를 확보하며, 거의 7,300 메가와트(MW)의 전력 용량을 추가하는 계약을 체결했습니다. 이 혼합에는 재생 에너지, 배터리 저장소 및 천연 가스가 포함되며, 93%가 청정 에너지 기술에서 나오고 있습니다. 포트폴리오에는 170 MW 아이언우드 태양광 발전소, 2,480 MW의 태양광 자원 구매 계약, 3,460 MW의 배터리 저장 용량, 500 MW의 풍력 발전 및 약 520 MW의 천연 가스 용량 확장이 포함됩니다. 이 프로젝트들은 2026년부터 가동을 시작하여 애리조나의 증가하는 에너지 수요를 충족할 예정이며, 2038년까지 예상되는 최고 고객 수요는 13,000 MW에 이를 것으로 보입니다.
Arizona Public Service (APS) a sécurisé son ajout d'approvisionnement énergétique le plus important à ce jour, signant des accords pour ajouter près de 7.300 mégawatts (MW) de capacité de puissance. Le mélange comprend de l'énergie renouvelable, du stockage par batterie et du gaz naturel, avec 93% provenant de technologies d'énergie propre. Le portefeuille comprend la centrale solaire Ironwood de 170 MW, 2.480 MW de ressources solaires via des contrats d'achat d'énergie, 3.460 MW de capacité de stockage par batterie, 500 MW d'énergie éolienne et environ 520 MW d'expansions de capacité de gaz naturel. Les projets commenceront leurs opérations dès 2026 pour répondre à la demande croissante en énergie de l'Arizona, avec une demande client de pointe prévue d'atteindre 13.000 MW d'ici 2038.
Arizona Public Service (APS) hat die größte Energieversorgungserweiterung in seiner Geschichte sichergestellt und Verträge unterzeichnet, um fast 7.300 Megawatt (MW) an Leistungskapazität hinzuzufügen. Das Mix umfasst erneuerbare Energien, Batteriespeicher und Erdgas, wobei 93% aus sauberen Energietechnologien stammt. Das Portfolio umfasst das 170 MW Ironwood Solarwerk, 2.480 MW an solarer Ressourcen über Stromabnahmeverträge, 3.460 MW an Batteriespeicherkapazitäten, 500 MW an Windkraft und etwa 520 MW an Erweiterungen der Erdgasstatistik. Die Projekte werden voraussichtlich im Jahr 2026 mit dem Betrieb beginnen, um den wachsenden Energiebedarf von Arizona zu decken, wobei die Spitzenlast der Kunden bis 2038 voraussichtlich 13.000 MW erreichen wird.
- Secured 7,300 MW of new power capacity, with 93% from clean energy sources
- Diversified energy mix including solar, wind, battery storage, and natural gas
- Significant battery storage capacity (3,460 MW) to enhance grid reliability
- Strong growth projection with peak demand expected to increase 60% by 2038
- Substantial capital investment required for multiple facility expansions
- Continued reliance on natural gas despite clean energy focus
- Risk of project delays affecting planned 2026 operational timeline
Insights
This massive 7,300 MW energy procurement marks a significant strategic expansion for APS, with
The strategic mix of renewables with natural gas backup addresses both environmental goals and reliability concerns. The battery storage component is particularly noteworthy, enabling solar power utilization during peak evening demand. This balanced approach should help manage costs while supporting Arizona's rapid growth and extreme weather challenges.
This procurement represents a major positive catalyst for PNW's long-term growth strategy. The investment addresses critical infrastructure needs in one of America's fastest-growing markets while aligning with clean energy transitions. The emphasis on cost-competitive electricity and the transparent RFP process suggests prudent capital allocation.
The company's proactive approach to meeting future demand, with plans for an additional 2,000 MW procurement in 2024, demonstrates strong forward planning. This positions PNW well for sustained growth in its regulated utility business, while the high percentage of clean energy assets should appeal to ESG-focused investors.
Enough electricity to power nearly 1.4 million air conditioners at the same time
“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
Website: aps.com/newsroom
Source: Arizona Public Service
FAQ
How much new energy capacity is APS (PNW) adding through its latest agreements?
When will the new APS (PNW) Ironwood Solar Plant begin operations?
What percentage of APS's (PNW) new energy supply comes from clean energy technologies?
What is APS's (PNW) projected peak customer demand by 2038?
