APS forecasts significant increases in renewable energy and natural
gas; envisions a more technologically advanced grid
Company Website:
http://aps.com
PHOENIX -- (Business Wire)
Arizona Public Service today released its official forecast of how
Arizona will meet its growing energy needs over the next 15 years. The
report, called an “Integrated Resource Plan,” takes a big-picture look
at Arizona’s energy future that helps APS and other stakeholders plan
responsibly. The forecast identified three major trends shaping
Arizona’s energy future:
- Arizona’s energy mix will be cleaner. The report predicts that
energy from renewable sources will double by 2029. The fastest-growing
segment within the renewable category is expected to be rooftop solar,
which should triple over the same period. Savings from energy
efficiency measures, which are intended to reduce customer demand, are
also expected to triple by 2029.
- Natural gas will be the new energy source of choice. Because
renewable energy can’t supply customers with steady, predictable
energy around the clock, Arizona will need more generation from
natural gas, which can start and ramp up quickly, and can provide
energy reliably day or night. Over the next 15 years, natural gas is
projected to surpass coal and nuclear as the largest source of
electricity generation for APS customers. APS still will maintain a
diverse, balanced resource portfolio to provide customers with
affordable electricity, and manage exposure to fuel price volatility.
- Advanced technology will change the electricity grid. In the
next 15 years, APS customers will have more choices about their energy
use – smart appliances, plug-in electric vehicles, rooftop solar
panels and even the possibility of battery storage. To enable these
choices while ensuring safe and reliable electricity, APS is
modernizing its electricity grid, making it more dynamic and flexible.
“Arizona’s energy future is bright,” said Tammy McLeod, Vice President
of Resource Management for APS. “When we look into the future, we see
Arizona’s growing energy needs being met with resources that are
increasingly clean, diverse and innovative.”
The report paints an optimistic picture of Arizona’s economic growth. It
projects that the state’s energy needs will grow 52 percent in the next
15 years. The requirement for peak demand is predicted to hit nearly
13,000 megawatts by 2029, up 60 percent from today’s peak requirement of
8,124 megawatts. Peak demand measures the amount of electricity being
used when energy use is at its highest point.
The projected growth of renewable energy, combined with other actions
including the recent closure of three coal-fired units at the
APS-operated Four Corners Power Plant, is predicted to make the overall
APS energy mix cleaner and more efficient. The report anticipates that
in 2029, the APS generation portfolio will produce 14 percent less
carbon dioxide and use 24 percent less water per megawatt-hour of
electricity generated.
The report also envisions the need for flexible generation and a modern
electricity grid. In the past, the electricity grid was like a one-way
street. Electricity was generated at large, centralized power plants and
delivered to customers at the flip of a switch. Today, power generation
is becoming more complex and, in the case of renewable energy,
unpredictable and variable based on the weather.
To ensure a steady and reliable energy supply, the report anticipates
that utilities like APS will need more generating plants that can
respond quickly to changes in customer demand and renewable output. For
example, when cloud cover suddenly decreases production from solar
sources, APS customers will need smaller, quick-starting generation that
can respond within minutes to changing conditions. Power plants fueled
with natural gas are better at “ramping,” as it is called, than
generating sources such as nuclear and coal.
Along with a more flexible energy mix, Arizona will also need a more
flexible, modern electricity grid. APS plans to invest $170 million in
modern grid technology over the next five years, in addition to routine
grid maintenance and upgrades. This includes installing more than 5,000
advanced devices across the electricity grid that will help APS workers
keep it safe and reliable.
APS files its Integrated Resource Plan with the Arizona Corporation
Commission every two years, forecasting how it will meet customers’
energy needs over a 15-year planning period.
APS, Arizona's largest and longest-serving electric utility, serves
nearly 1.2 million customers in 11 of the state's 15 counties. With
headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West
Capital Corporation (NYSE: PNW).
Contacts:
Arizona Public Service Co.
Media Contact: Steven Gotfried,
602-250-3040
Analyst Contact: Paul Mountain, 602-250-4952
Website:
aps.com/newsroom
Source: Arizona Public Service Co.
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