APS plans 83 MW of solar projects by late 2013; issues 14-MW RFP

Arizona Public Service (APS), a utility subsidiary of Pinnacle West Capital (NYSE: PNW) is bringing into commercial operation 83 MW of photovoltaic solar plants by the end of 2013, which represents an investment of $375m.

Meanwhile, planning and procurement is underway for additional projects, PNW executives said in a Feb. 24 quarterly earnings conference call. Longer term, the company hopes to see up to 200 MW of utility-scale PV solar units owned by APS and in-service between 2011 and 2015, according to a slide presentation that accompanied the earnings call.

The commitments to date as part of the AZ Sun Program include:

** The 17-MW Paloma project that went online in fall 2011;

** The 17-MW Cotton Center online in fall 2011;

** The 11-MW Hyder phase 1 in fall 2011;

** The 5-MW Hyder phase 2 in early 2012;

** The 19-MW Chino Valley project in 4Q 2012;

** The 14-MW Luke Air Force Base solar project in 2013.

The utility also recently announced a request for proposals for solar developers and installers interested in developing an additional 14-MW project at the Hyder 2 complex in Yuma County, Ariz. APS hopes to see the new solar unit completed in 2013.

A bidder’s webinar on the 14-MW RFP will be held March 21. RFP responses are due April 30 and a contract agreement is expect in August.

With AZ Sun, APS is investing in the development of 200 MW of solar photovoltaic power plants across Arizona. APS is partnering with third-party developers and equipment providers to design and construct the facilities, increasing the opportunity for more developers to participate since project financing is provided by APS.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.