Energy Storage, Utilities, Industrial, Solar  -  November 7, 2024

Arizona Public Service Signs for Solar + Storage

Arizona Public Service Company (APS) signed two new tolling agreements for solar and storage projects.

The agreements were signed with Recurrent Energy, a subsidiary of Canadian Solar Inc. and a global developer, owner, and operator of solar and energy storage assets.

The 20-year tolling agreements encompass the Desert Bloom Storage and Papago Solar projects. Both projects, located in Maricopa County, Arizona, are scheduled to start construction in 2025 and reach operation in 2026. 

Desert Bloom Storage is a 600-MWh standalone storage facility, while Papago Solar is a 150-MWac solar facility.

In 2023, Recurrent Energy announced it had secured a 20-year tolling agreement with APS for its 1,200-MWh Papago Storage project. The Papago Storage project is currently in construction and scheduled to commence operations in 2025. Once operational, Papago Storage will be the largest standalone energy storage project in Arizona.

Together, the three announced tolling agreements with APS total 1,800 MWh of energy storage and 150 MWac of solar. 

Arizona currently has 1,000 MW of operating energy storage, and renewable energy makes up 12% of the state's electricity mix. To keep up with growing demand, by 2030, Arizona anticipates adding 7,600 MW of utility-scale solar power, 1,700 MW of wind power and 5,900 MW of battery storage.

"With more people and businesses moving to Arizona, we expect our customers' energy needs to continue to increase significantly over the next several years,” said Brian Cole, APS Vice President of Resource Management, in a statement. “We are thoughtfully planning to meet that growing demand with reliable and clean electricity at the lowest cost possible through the addition of projects like Desert Bloom Storage, Papago Solar, and Papago Storage."

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