Canadian Solar’s subsidiary Recurrent Energy has inked two 20-year tolling agreements with Arizona Public Service Company (APS), bolstering Arizona's clean energy capacity with 1,800MWh of energy storage and 150MWac of solar by 2026.
The agreements involve the Desert Bloom Storage and Papago Solar projects in Maricopa County. Construction is set to begin in 2025, with operations commencing the following year.
Desert Bloom Storage will provide a 600MWh standalone storage facility, and Papago Solar will contribute a 150MWac solar facility.
Recurrent Energy CEO Ismael Guerrero said: “Our partnership with APS on 1.8GWh of storage and 150MW of solar capacity represents a remarkable build-out of energy infrastructure in the Phoenix area.
“APS has long been a leader in clean energy innovation, and we are thankful for APS' trust as we provide the projects needed to help satisfy Arizona's growing electricity demand. We look forward to continuing to build an enduring partnership with APS.”
These new projects complement last year's announcement of a 20-year tolling agreement for the 1,200MWh Papago Storage project, which is currently under construction and expected to operate in 2025.
Upon completion, it will be Arizona's largest standalone energy storage project.
Collectively, the three agreements with APS will deliver enough energy storage to power an equivalent of 72,000 homes for four hours and enough solar energy to power approximately 24,000 homes annually.
Arizona's current energy storage capacity stands at 1GW, with renewable energy accounting for 12% of the state's electricity mix.
To meet increasing energy demands, Arizona plans to add 7.6GW of utility-scale solar power, 1.7GW of wind power, and 5.9GW of battery storage by 2030.
This expansion is expected to supply clean electricity to over five million homes.
APS resource management vice-president Brian Cole said: “With more people and businesses moving to Arizona, we expect our customers' energy needs to continue to increase significantly over the next several years.
“We are thoughtfully planning to meet that growing demand with reliable and clean electricity at the lowest cost possible through the addition of projects like Desert Bloom Storage, Papago Solar, and Papago Storage."
