Grand Canyon Times

The Federal Energy Regulatory Commission (FERC) has released its latest "Energy Infrastructure Update," revealing that solar power constituted 81% of new energy generating capacity in the United States during the first eleven months of 2024.

Arizona is following this national trend. Decisions by the Arizona Corporation Commission (ACC) in 2024 led to the approval or addition of over 4,700 MW of new energy generating capacity, which includes solar, battery storage, and natural gas-fired energy. Of this new capacity, approximately 82% (3,850 MW) is expected to come from solar energy and battery storage. Natural gas-fired plant expansions are projected to increase Arizona's energy generating capacity by about 18% (922 MW). Most approved resources are under construction and are anticipated to be operational later this year.

Vice Chair Myers commented on maintaining grid reliability: “To maintain grid reliability and resource adequacy in Arizona in the coming years will require an all-of-the-above approach for energy generation,” he said. “To this end, Commission decisions have facilitated the development of various kinds of generation projects, including private solar plus battery storage projects that have entered into power purchase agreements with our regulated utilities. This approach advances resource adequacy while keeping costs lower for Arizona customers.”

Arizona Public Service Company (APS), the state's largest utility, plans to add nearly 2,500 MW of solar and battery storage through power purchase agreements with nine new facilities by year's end. These facilities are owned and operated by third-party developers from whom APS will buy electricity. Similarly, Tucson Electric Power Company aims to add nearly 400 MW of new solar and battery storage by 2026 through contracts with independent facilities.

Commissioner Lea Marquez Peterson expressed satisfaction with these developments: “I am proud of the work by our Arizona utilities in ensuring that Arizona’s electric grid remain one of the most reliable in the nation. The new generation capacity in our state provided by utility scale solar, battery and natural gas is providing the balanced approach we need to ensure our commitment to energy reliability at the most affordable rates,” she stated. “The rapid expansion of non carbon emitting generation resources demonstrates that the utilities are acquiring these resources without mandates while fulfilling our promises to Arizona’s ratepayers.”