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Researched by Industrial Info Resources (Sugar Land, Texas)--Temperatures may have cooled across the U.S. Southwest, but Arizona likely won't forget its scorching summer, which made even its iconic saguaro cacti seem to throw up their arms in exasperation (and thirst). The record-setting heat wave may have encouraged innovation in the Grand Canyon State's energy market, which, like Texas, depended heavily on battery energy-storage system (BESS) facilities to keep the lights on. Industrial Info is tracking more than $6.8 billion worth of active and planned BESS projects across Arizona, the bulk of which are in the southern half of the state.

AttachmentClick on the image at right for a graph detailing BESS projects across Arizona, by county.

Many of the BESS projects are in or around Phoenix, which saw its hottest three months since record-keeping began in 1895. These include two of the highest-valued projects: Strata Clean Energy LLC's (Durham, North Carolina) 400-megawatt (MW) Scatter Wash BESS in Phoenix, and Plus Power's (San Francisco, California) 250-MW Sierra Estrella BESS in Avondale, both of which are expected to utilize mega-pack lithium-ion batteries from Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas). Scatter Wash is expected to begin construction before the end of the year, while developers of Sierra Estrella held a ceremonial groundbreaking this spring.

Strata Clean Energy entered into a 20-year tolling agreement with Arizona Public Service Company (APS), a subsidiary of Pinnacle West Capital Corporation (NYSE:PNW) (Phoenix) that is Arizona's largest utility, in which APS will finance the electricity used to charge the BESS. Salt River Project (Tempe, Arizona), the Grand Canyon State's second-largest utility, will decide when the Plus Power-owned Sierra Estrella will release energy onto Arizona's power grid. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Scatter Wash and Sierra Estrella projects.

Most of the BESS projects in Arizona are co-located with solar-energy plants, including two from NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) already under construction: the 250-MW Sonoran Energy Center near Buckeye, and Storey Energy Center in Coolidge, which are expected to provide 250 and 88 MW, respectively, to Salt River Project. Both projects are set to be completed toward the end of the year. Subscribers can read detailed reports on the Sonoran and Storey projects.

In a recent quarterly earnings-related conference call, John Ketchum, the chief executive officer of NextEra Energy, noted the U.S. market for solar and BESS projects is improving: "The bottom line is, when you look at the solar picture, it's favorable from an equipped-price standpoint, because I think you're starting to see a lot of capacity come online that is going to force prices down over time, particularly as you see the U.S. market evolve." He later added: "Battery prices are coming down as well. We're finally seeing a relaxation in battery prices."

Other non-utility-owned, co-located BESS projects in Arizona include Hanwha Group's (Seoul, South Korea) Atlas Solar Farm and BESS in Salome, which is expected to generate and store 250 MW in its first phase, which is set to begin construction next year. Four phases, each with the same capacity, are envisioned to begin construction through the end of the decade for a total output of 1 gigawatt (GW). Subscribers can learn more from detailed project reports on the first-phase solar farm and BESS, and can click here for a full list of project reports for the Atlas facility.

"We have found the solar resources to be very strong at this particular location," said Patrick Shim, the director of project development for Hanwha subsidiary 174 Power Global, told Phoenix New Times when the project was announced in 2020. "The total amount of sunshine available throughout the day is relatively high compared to other regions."

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned BESS projects across Arizona.

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).

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