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:
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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.
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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.
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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.
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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.
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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.
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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.
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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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