Arizona and energy production

Summary: The southwestern state of Arizona relies primarily on natural gas and nuclear power for its energy needs and has significant solar and wind power potential.

The nineteenth century saw the rise of energy demand as coal-driven steam power and later electricity became significant sources of power for society. Arizona was no exception, and it saw the formation of utilities shortly after the first permanent towns were formed. Prior to this period, non-indigenous people did not build towns or population centers in the region, since desert conditions made the area largely unlivable. The first settlers in the state came as miners, some of whom stayed on to become subsistence farmers. As populations grew and technological advances were made, the need to provide for basic amenities became more pressing.

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In 1884, the Phoenix Light and Fuel Company (which later would become the Arizona Public Service Company, in modern times known as APS) was formed to provide regular electric supply and heating to the people of Phoenix, Arizona. APS was part of the American Power and Light conglomerate between 1925 and 1945, before attaining its independent status. Currently owned by Pinnacle West Capital Corporation, APS is the largest supplier of electricity in the state, with a power generation capacity of 4,000 megawatts reaching 1.4 million customers around the state. It relies largely on coal and natural gas for fuel, but announced plans to phase out coal by 2031 and eventually to eliminate all fossil fuel emissions.

Another major electric utility in the state is the Salt River Project Agricultural Improvement and Power District. A state-run agency, the utility serves areas in and around the Phoenix metropolitan area. The Arizona Corporation Commission (ACC) regulates energy utilities in Arizona.

Consumption and Production

Although Arizona ranks in the middle of US states in total energy consumption, the per capita consumption of energy is low, in part because many residents are seasonal. In addition, the state economy is not energy-intensive, with farming and mining remaining major occupations. The transportation sector is the main energy-consuming sector in the state.

Coal-fired power plants supplied approximately 10 percent of Arizona’s total demand for electricity in 2023. Natural gas-fired plants (46 percent), nuclear power plants (27 percent), solar energy (10 percent), hydroelectric (5 percent), and wind (1 percent) supply most of the remainder. Arizona’s lone nuclear power plant, the three-unit Palo Verde plant, is the largest nuclear energy facility in the country and had the second-highest-rated capacity of any power plant in the United States. Hydroelectric power is obtained from the Glen Canyon and Hoover Dams, both located on the Colorado River in northern Arizona.

Most of Arizona’s coal production takes place in the Black Mesa Basin, located in the northeastern part of the state. Of the coal produced in Arizona, more than one-third is transported out of the state by rail for consumption by utilities in other states. The remaining two-thirds, in addition to coal supplies imported primarily from New Mexico, is consumed at power plants in the state. Power produced in the state is also supplied to Southern California, although the two states have been in dispute over power issues. Imports from Arizona help meet the electricity demands of such heavily populated cities as Los Angeles and San Diego. The supply of power to these states is largely through the Path 46 transmission line grid, also called the West of Colorado River or Arizona-California West-of-River (WOR) Path. It consists of a set of high-voltage alternating current (AC) transmission lines located in southeastern California and Nevada, right up to the Colorado River.

Arizona has no oil refineries, and only minimal crude oil production takes place in the state. It receives its petroleum products through two pipelines, one coming from Southern California and the other from Texas.

Utility companies are increasingly exploring solar power in a bid to reduce dependence on fossil fuels. Arizona has huge potential for harnessing solar power. Recent desertification of some areas of the state has increased the number of sites available for tapping solar power.

As of July 2023, the state had an installed power-generation capacity of 6,731 megawatts of solar power. In February 2006, the ACC set a renewable portfolio standard known as the Renewable Energy Standard and Tariff (REST), which required regulated utilities to meet at least 15 percent of their energy needs using renewable sources by 2025. Of this, 4.5 percent was to be met by distributed renewable energy sources. To track the implementation and effectiveness of the REST, ACC established a Website, Arizona Goes Solar, in association with the state’s energy utilities.

The Dry Lake Wind Power Project in Navajo County is Arizona’s first utility-scale wind farm. The Suzlon S88-2.1-megawatt turbines at this wind power project can generate up to 127 megawatts of clean, renewable energy. Typically, a 127-megawatt wind project can generate power for more than 20,000 average homes, according to calculations by the American Wind Energy Association.

Since 1995, the Energy Utility Environment Conference (EUEC) has been convened in the state capital, Phoenix. The EUEC is primarily an educational and networking initiative and has the stated objective of promoting clean, renewable, and alternative energy solutions to secure energy independence from fossil fuels imported into the United States, while protecting the environment.

Arizona ranked ninth in the nation for photovoltaic solar institutions in 2023. This represented an additional 861 megawatts installed; 685 megawatts were added the previous year. By 2028, the state projected it would have 10,651 megawatts installed.

Bibliography

Abdelhamid, Aisha. "Arizona Solar Power (In Depth)." CleanTechnica, 15 Nov. 2016, cleantechnica.com/2016/11/15/arizona-solar-power-depth/. Accessed 6 Sept. 2017.

"Arizona Ranks Ninth in Nation for Solar Industry Growth in 2023, Report Finds." Arizona Technology Council, 2024, www.aztechcouncil.org/arizona-solar-energy-growth-2023/. Accessed 1 Aug. 2024.

Barnhart, Ardeth. “Solar Energy and Water Use in Arizona.” Presented at the WRRC Brown Bag Seminar, September 16, 2010. wrrc.cals.arizona.edu/sites/wrrc.arizona.edu/files/barnhart.pdf.

US Energy Information Administration. “Arizona.” www.eia.gov/state/index.php?sid=AZ. Accessed 1 Aug. 2024.