Tucson Electric to Add 160 MW of Renewable Power

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 did not announce the names of the project developers.

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.

TEP’s parent company is UniSource Energy Corporation (NYSE: UNS).

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.

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.

All of the projects announced 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 renewable energy resources.

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% of their retail energy in 2025.

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