TEP Signs Agreements for Nearly 160 Megawatts of
Renewable Power Projects
TUCSON, Ariz., May 27, 2010 -- BUSINESS WIRE
Tucson Electric Power (TEP) has agreed to purchase the output of 10 new
solar power systems, a landfill gas generation project and a new wind
farm that together would generate nearly 160 megawatts (MW), enough
renewable energy to power more than 30,000 Tucson homes.
TEP has submitted the agreements to the Arizona Corporation Commission
(ACC) for review. The commission's endorsement would allow developers of
the systems to proceed with efforts to finalize financing, secure land
rights and clear other necessary hurdles in hopes of completing their
projects in time to begin providing power in 2011 or 2012.
"These agreements are the next step in our development of local
utility-scale renewable power projects that will help us achieve our
renewable energy goals," said Paul Bonavia, Chairman, President and CEO
of TEP and its parent company, UniSource Energy Corporation (NYSE: UNS).
"We're looking forward to including these resources in TEP's growing
green power portfolio."
Solar projects with a combined capacity of 107 MW would be developed
in the Tucson area under the contracts, including:
-- Three solar photovoltaic (PV) arrays built with fixed, stationary
panels, including systems capable of generating 35 MW, 25 MW and 5 MW;
-- Four PV arrays that track the sun's arc across the sky along a single
axis, including one rated at 12 MW, another at 4 MW and two sized at 5
MW apiece; and
-- Three concentrating solar power systems that focus sunlight on PV
material to improve energy output. One of these systems would be capable
of generating 12 MW, while two others would produce up to 2 MW each.
TEP also has agreed to purchase energy from a new biogas generator that
would be built at Pima County's Tangerine Landfill. The project would
produce up to 2.2 MW from methane gas, a renewable fuel generated
naturally through the decomposition process.
Finally, TEP has agreed to purchase the output of a 50-MW wind farm that
would be developed near TEP's existing high-efficiency natural gas Luna
Energy Generating Station in Deming, N.M. The power would be delivered
to Tucson through an existing transmission line already used by TEP.
"These projects would provide our customers with clean,
reasonably-priced power from a wide variety of zero-water renewable
energy technologies," said David Hutchens, Vice President of Energy
Efficiency and Resource Planning for TEP and UniSource Energy.
The proposed systems would complement two new solar power systems
already planned to be built in the Tucson area by January 2012.
Fotowatio Renewable Ventures is building a 25-MW single-axis tracking PV
array near Marana, while Bell Independent Power Corp. (BIPC) is building
a 5-MW concentrating solar power plant at the University of Arizona's
Science and Technology Park. The ACC has expressed its support for TEP's
agreements to purchase the output of both systems, which will provide
enough energy to power more than 6,000 Tucson homes.
Before those systems come online, TEP will add 1.8 MW of capacity this
year to its 4.6-MW Springerville Generating Station Solar System, which
already is one of the largest grid-tied PV arrays in the United States.
The expanded array will generate enough energy to power more than 1,000
Tucson homes.
TEP also will build a 1.6-MW single axis tracking array in the Tucson
area later this year that could be used to support the company's
proposed Bright Tucson Community Solar program. The program, which is
awaiting regulatory review, would allow customers to buy 150
kilowatt-hour (kWh) "blocks" of solar energy produced by Tucson-area
solar arrays.
All of the projects announced today are in the planning stages, and some
of them may not be built if the developers are unable to arrange
financing or clear other necessary hurdles. But the capacity ultimately
developed will represent a significant addition to TEP's growing
renewable energy resources. With funding provided by customers, TEP has
developed nearly 10 MW of company-owned renewable energy generating
capacity along with more than 6 MW of customer-sited systems subsidized
by the company's popular SunShare rebates.
The output of these systems helps TEP pursue renewable energy goals
established by the ACC through the state's Renewable Energy Standard
(RES). The rules call on TEP and other Arizona utilities to increase
their use of renewable power each year until it represents 15 percent of
their retail energy in 2025.
Tucson Electric Power provides safe, reliable power to more than 400,000
customers in southern Arizona. For more information, visit tep.com. For
more information about UniSource Energy, TEP's parent company, visit
uns.com.
SOURCE: Tucson Electric Power
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