Tokyo-based Electric Power Subsidiary partners with AP Solar in 400 MW Texas Solar Project

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Industry News

Tucson Electric Power's Renewable PPA's Supported by Arizona Commission

LCG, September 3, 2010--Tucson Electric Power (TEP) announced yesterday that the Arizona Corporation Commission (ACC) expressed its support for the power purchase agreements (PPAs) for ten renewable energy projects having a combined electric generating capacity of nearly 150 MW.

The ACC, which received the PPAs in late May, determined that the agreements are "an appropriate component" of TEP's actions toward achieving compliance with Arizona's renewable energy goals. The renewable project developers are now poised to proceed toward completion of financing, securing land rights, and other necessary steps that will enable construction of the projects, with operations scheduled to commence in 2011 or 2012.

The eight solar projects have a combined capacity of 97 MW and are sited in the Tucson area. The projects include three photovoltaic (PV) facilities that employ fixed panels and have electric generating capacities of 35 MW, 25 MW and 5 MW, respectively. Two other PV projects will employ single-axis tracking devices and have capacities of 12 MW and 4 MW, respectively.

There are three proposed solar projects designed to use concentrating solar power (CSP) PV systems that use mirrors to focus the sun's energy on PV material to increase energy output from each PV cell. The generating capacity of the largest project is 12 MW, and that of the other two projects is 2 MW each.

The largest single renewable project is a proposed 50-MW wind farm sited near TEP's existing natural gas-fired Luna Energy Generating Station in Deming, New Mexico.

A new biogas generator with an electric generating capacity of 2.2 MW is the last renewable project supported by the ACC. The proposed generator will be installed at Pima County's Tangerine Landfill and burn biogas collected from and generated by the landfill.

David Hutchens, Vice President of Energy Efficiency and Resource Planning for TEP and UniSource Energy, stated, "These new systems, combined with other projects already in the works, will give us access to clean, green energy from a wide variety of reasonably priced renewable generating resources."

The development of these "zero-water, renewable energy" projects is a positive step by TEP to comply with Arizona's Renewable Energy Standard (RES), which sets a target for utilities of using renewable power to meet 15 percent of the electricity demand of their customers in 2025.
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