Natural Gas, Solar Among Sources Set to Energize Arizona After Massive Coal Plant Closes

Researched by Industrial Info Resources (Sugar Land, Texas)--Arizona's Navajo Power Station has turned off its lights after nearly half a century of coal-fired generation. As the largest coal-fired power plant in the western U.S., its closure is another sign of the fossil fuel's rapid capitulation to a changing energy market. Both natural gas and nuclear have edged out coal as a fuel for energy consumed within the state, and renewables are gaining ground. Industrial Info is tracking more than $16 billion in active power-generation projects in Arizona, more than $2 billion of which is attributed to projects under construction.

Click on the image at right to see a graph detailing Arizona's active power-generation projects, by fuel type.

Salt River Project (Tempe, Arizona), which owned the 2.25-gigawatt (GW) Navajo plant, initially planned to close it in 2017, but struck a deal with leaders of the Navajo Nation to keep it going for another two years, according to Bloomberg. The plant, situated on Navajo land in northeastern Arizona, was a major source of jobs for the tribe and others in the area. For more data on the shuttered facility, see Industrial Info's plant profile.

The largest power-generation project under construction in the Grand Canyon State is intended for a single facility. Pegasus Group Holdings' (Las Vegas, Nevada) $900 million Golden Valley solar array addition in Mohave County will fuel what is expected to be the largest solar-powered data center in the world, nicknamed "The Hive." The company says a network of modified cargo containers, each housing between 500 and 1,000 servers, will be powered by a massive number of photovoltaic (PV) panels; the current phase will add about 160,000 panels to generate 340 megawatts (MW). For more information, see Industrial Info's project report.

Other solar projects proposed for Arizona include Origis Energy USA Incorporated's (Miami, Florida) solar facility in Salome, which is designed to generate 32.5 MW; NextEra Energy Incorporated's (NYSE:NEE) (Juno Beach, Florida) 100-MW Wilmot Energy Center near Tucson; and Invenergy LLC's (Chicago, Illinois) 110-MW solar facility near Yuma. These projects remain in their planning phases, where plenty of factors could alter or eliminate expected spending; all three are expected to use PV panels, and the Yuma project would be built on land leased from the Arizona State Land Department. For more information, see Industrial Info's reports on the Salome, Wilmot and Yuma projects.

Of course, none of this is to say that fossil fuels lack a future in Arizona. Tucson Electric Power Company, a subsidiary of Fortis Incorporated (NYSE:FTS) (St. John's, Newfoundland and Labrador), is at work on a $35 million boiler revamp for Unit 1 and a $40 million boiler revamp for Unit 3 at a coal-fired generating station in Springerville. The units generate 425 and 418 MW, respectively. Unit 3's revamp is expected to wrap up later this year, while Unit 1's upgrade is set to be completed in late 2020. For more information, see Industrial Info's project reports on Unit 1 and Unit 3.

Tucson Electric also is at work on a $200 million peaking station next to the H. Wilson Sundt Power Plant in Tucson. The gas-fired peaking station, which is expected to generate 180 MW from 10 internal combustion engines, is expected to finish construction next summer. For more information, see Industrial Info's project report.

But the single largest generator in Arizona is the Palo Verde Nuclear Generating Station in Maricopa County, which produces more energy than any other nuclear station in the country. The plant is wrapping up a $22 million rewind of Unit 3, in which necessary copper windings and steel are removed and/or replaced, improving the unit's reliability and lifespan, and is preparing for a $22 million rewind of Unit 1 next year. For more information, see Industrial Info's project reports on Unit 3 and Unit 1.

In addition to the above-mentioned capital-spending projects, Industrial Info is tracking nearly $150 million in maintenance-related projects planned for power-generation facilities across Arizona. Click here for a list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.