APS: Arizona to See Dramatic Changes in Energy Mix Within 15 Years

By 2029, renewable sources in Arizona’s energy mix will double and natural gas’s share will surpass coal’s and nuclear’s, the state’s largest utility, Arizona Public Service (APS) projects in its newly released “Integrated Resource Plan.” 

The report, which foresees that the state’s energy needs will grow 52% while peak demand will surge 60% compared to the current 8.1 GW within the next 15 years, outlines three major trends. One is that Arizona’s energy mix will be cleaner. Renewables will double led by strong growth in rooftop solar, and energy efficiency measures will triple by 2029, it says.

It also forecasts that natural gas “will be the new energy source of choice” within 15 years. The report takes into account the closure of three coal-fired units at the Four Corners Plant, a measure that APS admits will make its energy mix “cleaner and more efficient.” However, APS will still maintain “a diverse, balanced resource portfolio to provide customers with affordable electricity, and manage exposure to fuel price volatility,” it said. The report anticipates that in 2029, the APS generation portfolio will produce 14% less carbon dioxide and use 24% less water per megawatt-hour of electricity generated.

Finally, “advanced technology will change the electricity grid,” it projects. To enable those choices while ensuring reliability, APS said it will spend $170 million to modernize its power grid and make it more dynamic and flexible.

—Sonal Patel, associate editor (@POWERmagazine, @sonalcpatel)