APS Takes Big-Picture Look at Arizona’s Energy Future in 15-Year Forecast
April 12 2017 - 6:15PM
Business Wire
Company increasing flexible resources and grid
investment to continue providing clean, reliable and affordable
electricity
APS customers will benefit from increasingly clean, reliable and
affordable energy – and a smarter, stronger energy grid – through
steps outlined in the company’s 2017 Integrated Resource Plan. The
Integrated Resource Plan (IRP), the result of a three-year-long
stakeholder process, outlines how APS plans to meet customers’
projected energy needs over the next 15 years.
“The 2017 Integrated Resource Plan outlines how our investment
in a smarter energy infrastructure will benefit customers through
innovation, reliability and more ways to control their energy use,”
said Tammy McLeod, APS Vice President of Resource Management.
“Overall, our energy mix is increasingly cleaner, and we are adding
more quick-starting power sources to integrate our growing solar
energy resources and emerging technologies.”
Specifically, customers may see:
- Increased use of solar energy and
energy efficiency will meet nearly 50 percent of the
anticipated new energy growth. APS predicts a significant increase
in private rooftop solar capacity and support from energy
efficiency programs. APS continues to meet the energy efficiency
standard set by the ACC, which is one of the nation’s most
aggressive standards, and is focusing on peak-period measures,
which include energy efficiency, demand response and load-shifting
programs, going forward.
- Addition of battery storage from
existing pilot programs to over 500 MW of capacity enables APS to
support growing intermittent renewable energy resources such as
solar. APS is taking the lead in Arizona’s deployment of energy
storage, advanced inverters, and other controllable resources to
better manage peak demand, minimize carbon emissions and solve
renewable energy integration challenges for the benefit of all APS
customers.
- Continued operation of the nation’s
largest carbon-free energy resource, the Palo Verde Nuclear
Generating Station, will anchor APS’s energy mix. Palo Verde
produces nearly 80 percent of Arizona’s carbon-free energy.
Overall, half of APS’s current energy mix is carbon-free (25
percent nuclear, 13 percent energy efficiency, 12 percent
renewables). APS anticipates meeting customers’ increasing energy
needs while reducing carbon intensity by 23 percent and water
intensity by 29 percent.
- Development of advanced grid
technologies such as distributed energy resources, batteries
and microgrids, while continuing research programs that evaluate
how solar, energy storage and other technologies interact with each
other is a priority for APS. APS recently deployed a new
distribution operations system that increases situational awareness
using real-time capabilities, allowing operators to react more
quickly to outages and more efficiently integrate distributed
energy resources.
- A reduction in coal generation
and increased environmental controls at existing units contribute
to a cleaner energy mix for APS and Arizona. Over the next 15
years, coal’s contribution to the APS energy mix will fall from 21
percent to 11 percent, and in the near-term the Four Corners power
plant will see a 90 percent reduction of nitrogen oxide (NOx)
levels.
- A balanced and diverse energy mix
that includes more flexible capacity is needed to integrate
renewable energy resources throughout the year. Natural gas is
planned to grow from 26 percent to 33 percent of the APS energy mix
by 2032. It’s abundant, affordable, reliable, flexible and
responsive to customer demand. Natural gas generation provides
much-needed summer peaking capacity, is fast ramping to enable
renewable integration and is also a low-emissions fuel that
contributes to a cleaner energy mix.
- Modernization of the Ocotillo Power
Plant with quick-start natural gas-fired units is an example of
one of many upgrades APS is making to the grid. The upgrades at
Ocotillo provide the flexibility to maintain a balanced, reliable
power supply, particularly when renewable resources are not
generating power during weather interruptions and when the sun is
setting and solar stops producing. APS will continue to invest
significantly in grid upgrades and maintenance to maintain reliable
service.
“Increasing renewable resources, energy efficiency and energy
technologies, supported with highly responsive resources such as
natural gas generation, will enable APS to deliver cleaner,
reliable and reasonably priced electricity,” said McLeod.
“Resources that we can turn on and off quickly are critical in
maintaining power reliability while keeping costs low for
customers.”
Additionally, APS will continue to pursue opportunities to
increase operating efficiency and save customers money, such as
participating in the CAISO Energy Imbalance Market and purchasing
excess energy from short-term markets at low or negative (i.e.,
paid to take) prices.
APS’s resource requirement is expected to reach 13,000 MW by
year 2032 or about 60 percent higher than today’s forecast resource
requirement of approximately 8,000 MW, as a result of anticipated
population growth and greater economic activity in Arizona. When
determining how to meet the increased need, APS chose the
combination of resource options that met a number of objectives for
customers: affordability, flexibility, reliability, risk management
and sustainability.
“The IRP is our strategic road map for securing energy resources
that enable us to supply electricity now and in the future,” McLeod
said. “Advancing technologies, growing renewable energy resources
and increasing customer sentiment for cleaner energy are
accelerating change in the electric utility industry. A number of
factors could cause actual results to differ from the IRP’s 15-year
forecast, but no matter what we’ll work to ensure a reliable and
affordable energy future for our customers.”
APS’s 2017 Integrated Resource Plan is available at
aps.com/resources.
APS serves about 2.7 million people in 11 of Arizona’s 15
counties, and is the Southwest’s foremost producer of clean, safe
and reliable electricity. Using a balanced energy mix that is
nearly 50 percent carbon-free, APS has one of the country’s most
substantial renewable energy portfolios, and owns and operates the
Palo Verde Nuclear Generating Station, the country’s top power
producer and largest producer of carbon-free energy. The company is
also a proven leader in introducing technology and services that
offer customers choice and control over their energy consumption.
With headquarters in Phoenix, APS is the principal subsidiary of
Pinnacle West Capital Corp. (NYSE: PNW).
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version on businesswire.com: http://www.businesswire.com/news/home/20170412006237/en/
APSMedia Contact:Anna Stewart, 602-250-2104Analyst Contact:Ted
Geisler, 602-250-3200Website: aps.com/newsroom
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