TEP’s Green Energy Vision: 2,240 MW Solar and Wind Generation, Alongside 1,330 MW Energy Storage by 2038

Tucson Electric Power (TEP) is ramping up its commitment to clean energy, unveiling an ambitious goal to achieve net zero direct greenhouse gas emissions by 2050. The company’s 2023 Integrated Resource Plan (IRP), filed with the Arizona Corporation Commission (ACC), outlines a strategic roadmap to meet growing energy demands while significantly reducing carbon dioxide (CO2) emissions and environmental impacts.

TEP envisions adding 2,240 megawatts (MW) of wind and solar generation and 1,330 MW of energy storage by 2038. Additionally, 400 MW of natural gas turbines will be integrated to offset coal plant retirements and support increased use of variable wind and solar energy. This comprehensive approach aims to achieve an 80 percent reduction in CO2 emissions by 2035, aligning with the company’s 2020 IRP goals.

Susan Gray, President and CEO of TEP, emphasized the balanced approach of the new resource plan, stating, “It supports reliability and affordability while enabling economic growth and keeping us aligned with worldwide efforts to combat climate change.”

Notably, the 2023 IRP revises the 2030 target for combined wind, solar, and storage additions from 1,000 MW to 1,500 MW. This adjustment addresses resource constraints and volatile pricing on the southwestern regional grid, seizing the opportunity presented by federal clean energy tax credits. Among the new systems is the recently announced 200-MW Roadrunner Reserve battery energy storage system set to be operational by 2025.

TEP anticipates a yearly increase of over 1 percent in peak energy demands over the next 15 years, factoring in economic growth, energy efficiency measures, expanded electric vehicle usage, and customer investments in distributed solar and storage systems.

In a bold move, TEP’s new net zero goal goes beyond the 2023 IRP, reflecting a commitment to prioritize future investments and leadership decisions. Achieving this aspirational target will necessitate advancements in technologies like long-duration storage, carbon capture, hydrogen generation, and small modular reactors. TEP also hopes to promote energy-smart behaviors among customers to support the broader effort.

To engage customers in this initiative, TEP will launch a campaign encouraging them to become “net zero heroes” by adopting sustainable energy practices.

The 2023 IRP emerged from an exhaustive analysis of 32 potential portfolios, with the selected option found to be the most cost-effective in supporting reliability and achieving CO2 reduction targets. The plan, however, does not determine specific details about new power generation projects, as those decisions will be made based on bids submitted in response to requests for proposals.

TEP’s commitment to sustainability is further evidenced by its partnership with the World Bank, securing a €300 million green loan for renewable projects in countries dependent on fossil fuels. The company’s strides in sustainable finance align with its €47 billion investment plan announced in November 2022, emphasizing decarbonization, smarter electricity grids, and renewable energy.

The 2023 IRP will undergo review by the ACC, offering opportunities for public comment.

Tucson Electric Power serves over 445,000 customers in Southern Arizona and is a subsidiary of Fortis Inc. (TSX/NYSE: FTS), a utility company serving over 3 million customers across Canada, the United States, and the Caribbean.