Arizona utility Tucson
Electric Power (TEP) said this week that it will buy solar energy
at a historically low price from a new local system large enough to power
21,000 homes.
The 100-MW solar array and an accompanying 30-MW energy
storage system are expected to be in service by the end of 2019. TEP said that,
excluding the cost of storage,
it will buy the system’s output for 20 years for less than $0.03/kWh — less
than half as much as it agreed to pay under similar contracts in recent years.
“This new local system combines cost-effective energy
production with cutting edge energy storage, helping us provide sustainable,
reliable and affordable service to all of our customers for decades to come,”
Carmine Tilghman, senior director of energy supply and renewable energy for
TEP, said in a May 22 statement.
An affiliate of NextEra Energy Resources will build, own and
operate the system on a site owned by the City of Tucson located inside TEP’s
service territory south of the metropolitan area.
NextEra also will build and operate a long-duration battery
storage system on the site that will help integrate renewable energy resources
into TEP’s local energy grid. The storage system will be capable of providing
up to 120 MWh of power.
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