Released October 12, 2023 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Board of Directors for Arizona's second-largest electric utility on October 2 approved a capital program to continue decarbonizing the utility's electric generation portfolio. The expected cost range is approximately $4.4 billion to $6.8 billion for the 2025-2055 period.
The capital program approved by Salt River Project's (SRP) (Tempe, Arizona) board includes:
In a statement, the utility said it will need to double or triple power resource capacity over the 2025-2035 period to continue serving SRP's growing customer base affordably, reliably and sustainably. It added it will use a wide range of technologies in the next decade to meet customer needs.
SRP said it is one of the first electric utilities in the U.S. that has shifted from a traditional integrated resource plan (IRP), which focused narrowly on future generation projects, to a broader "integrated system plan" (ISP), which considers investments in generation, storage, transmission and other areas beyond generation.
The utility described its ISP as "a holistic roadmap for its future power system that factors in evolving customer energy needs and achieving SRP's 2035 carbon-reduction goals."
Traditionally a utility that relied heavily on coal-fired generation and nuclear power (it owns about 700 MW of the three-unit Palo Verde Nuclear Power Station), SRP has decarbonized its energy mix in recent years. It closed the three-unit, 2,250-MW Navajo Generating Station in northern Arizona few years back, and by 2032 it will retire the two-unit, 822-MW Colorado Generating Station in eastern Arizona. SRP is considering repurposing that site and its electric infrastructure to host no- and low-carbon technologies that are sufficiently mature for commercial deployment. It also added more than 1,500 MW of renewable generation.
The planned generation additions are expected to contribute to a 56% overall reduction in SRP's water used by power generating resources, when compared with 2005 levels.
SRP described its ISP as a two-year, data-driven, stakeholder planning process. It included surveys of more than 1,400 customers, as well as contributions from Arizona's universities, businesses, environmental organizations, limited-income advocates and nonprofits, among other groups.
Those customer surveys said affordability of electricity was their primary concern, though they favored SRP pursuing its carbon reduction goals, the utility said October 2 in announcing its ISP. Customers said they preferred future system plans that had lower generation costs and reduced bills.
Power usage spikes during Arizona's long, hot summers, and during this past summer SRP experienced a multi-day, record-breaking peak energy demand on its power system that beat previous summer records by more than 7% for an extended period. The utility provides electricity to more than 1.1 million customers in the greater Phoenix metropolitan area. SRP also provides water to about half of the greater Phoenix area, about 750,000 acre-feet per year.
"With our extreme temperatures, customers can't afford blackouts like some of our neighboring states have experienced," said Bobby Olsen, SRP's chief planning, strategy and sustainability executive, in the utility's October 2 statement. "It's critical we use technology and infrastructure like fast-ramping natural gas to keep the lights on, families safe, and monthly bills low as we deliver more clean energy."
To meet growing demand for electricity, and to replace retired coal generation, the utility said it is adding renewables and energy storage, backed by 2,000 MW of dispatchable gas-fired generation, to ensure continued high levels of reliability while maintaining electric affordability.
In a statement, SRP said the ISP prioritizes affordability, reliability, sustainability and customer focus.
As part of its ISP, the utility analyzed the anticipated influx of electric transportation and electric heating and cooling over the next decade. To account for greater customer adoption of these technologies, the plan recommends evolving customer programs, such as demand response and energy-efficiency programs, to help customers shift when they use electricity.
"SRP has provided water and power to Arizona homes and businesses for more than 100 years," Olson said. "Our plans for a sustainable future will continue this legacy without compromising reliability and affordability. SRP will continue to report on its progress carrying out the Integrated System Plan strategies and find innovative ways to decarbonize, while leading the industry in investments in affordable, reliable and sustainable power generation."
The utility has not yet identified which capital projects will be built over the 2025-2035 period. Nor has it identified where those projects will be built. That information is expected to be released as SRP selects specific projects. As a public power utility, SRP generally is not regulated by the state utility regulator, the Arizona Corporation Commission (ACC). But any proposed power plants larger than 100 MW must be approved by that panel's siting group, Erica Roelfs, an SRP media relations representative, said in an interview.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The capital program approved by Salt River Project's (SRP) (Tempe, Arizona) board includes:
- 7,000 megawatts (MW) of new renewable generation
- 2,000 MW of new gas-fired generation
- 190 miles of new or upgraded transmission lines
- 1,000 MW of new pumped-hydro storage capacity
- 1,500 MW of battery energy-storage systems (BESS)
- Retiring 1,300 MW of existing, coal-fired generation
In a statement, the utility said it will need to double or triple power resource capacity over the 2025-2035 period to continue serving SRP's growing customer base affordably, reliably and sustainably. It added it will use a wide range of technologies in the next decade to meet customer needs.
SRP said it is one of the first electric utilities in the U.S. that has shifted from a traditional integrated resource plan (IRP), which focused narrowly on future generation projects, to a broader "integrated system plan" (ISP), which considers investments in generation, storage, transmission and other areas beyond generation.
The utility described its ISP as "a holistic roadmap for its future power system that factors in evolving customer energy needs and achieving SRP's 2035 carbon-reduction goals."
Traditionally a utility that relied heavily on coal-fired generation and nuclear power (it owns about 700 MW of the three-unit Palo Verde Nuclear Power Station), SRP has decarbonized its energy mix in recent years. It closed the three-unit, 2,250-MW Navajo Generating Station in northern Arizona few years back, and by 2032 it will retire the two-unit, 822-MW Colorado Generating Station in eastern Arizona. SRP is considering repurposing that site and its electric infrastructure to host no- and low-carbon technologies that are sufficiently mature for commercial deployment. It also added more than 1,500 MW of renewable generation.
The planned generation additions are expected to contribute to a 56% overall reduction in SRP's water used by power generating resources, when compared with 2005 levels.
SRP described its ISP as a two-year, data-driven, stakeholder planning process. It included surveys of more than 1,400 customers, as well as contributions from Arizona's universities, businesses, environmental organizations, limited-income advocates and nonprofits, among other groups.
Those customer surveys said affordability of electricity was their primary concern, though they favored SRP pursuing its carbon reduction goals, the utility said October 2 in announcing its ISP. Customers said they preferred future system plans that had lower generation costs and reduced bills.
Power usage spikes during Arizona's long, hot summers, and during this past summer SRP experienced a multi-day, record-breaking peak energy demand on its power system that beat previous summer records by more than 7% for an extended period. The utility provides electricity to more than 1.1 million customers in the greater Phoenix metropolitan area. SRP also provides water to about half of the greater Phoenix area, about 750,000 acre-feet per year.
"With our extreme temperatures, customers can't afford blackouts like some of our neighboring states have experienced," said Bobby Olsen, SRP's chief planning, strategy and sustainability executive, in the utility's October 2 statement. "It's critical we use technology and infrastructure like fast-ramping natural gas to keep the lights on, families safe, and monthly bills low as we deliver more clean energy."
To meet growing demand for electricity, and to replace retired coal generation, the utility said it is adding renewables and energy storage, backed by 2,000 MW of dispatchable gas-fired generation, to ensure continued high levels of reliability while maintaining electric affordability.
In a statement, SRP said the ISP prioritizes affordability, reliability, sustainability and customer focus.
As part of its ISP, the utility analyzed the anticipated influx of electric transportation and electric heating and cooling over the next decade. To account for greater customer adoption of these technologies, the plan recommends evolving customer programs, such as demand response and energy-efficiency programs, to help customers shift when they use electricity.
"SRP has provided water and power to Arizona homes and businesses for more than 100 years," Olson said. "Our plans for a sustainable future will continue this legacy without compromising reliability and affordability. SRP will continue to report on its progress carrying out the Integrated System Plan strategies and find innovative ways to decarbonize, while leading the industry in investments in affordable, reliable and sustainable power generation."
The utility has not yet identified which capital projects will be built over the 2025-2035 period. Nor has it identified where those projects will be built. That information is expected to be released as SRP selects specific projects. As a public power utility, SRP generally is not regulated by the state utility regulator, the Arizona Corporation Commission (ACC). But any proposed power plants larger than 100 MW must be approved by that panel's siting group, Erica Roelfs, an SRP media relations representative, said in an interview.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
