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    Home » Local News » ACC Votes to Support Solar Development in Arizona
    Local News

    ACC Votes to Support Solar Development in Arizona

    BEX StaffBy BEX StaffDecember 17, 2019No Comments1 Min Read
    Credit: AZ Big Media
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    Source: AZ Big Media

    The Arizona Corporation Commission (ACC) recently voted to reject a request from the state’s investor-owned utilities to set two-year contract terms for renewable energy projects under the federal Public Utility Regulatory Policies Act (PURPA). Instead, commissioners voted unanimously to set contract terms at 18 years, providing renewable energy developers the financial certainty they need to develop new clean energy projects in the state.

    Even in a state like Arizona, where solar and battery storage can cost billions of dollars less than coal power, short PURPA contract terms make financing far too risky for capital-intensive projects with lifetimes of 30 years. According to industry and Sierra Club experts, long-term contracts are therefore necessary to give renewable energy developers a reasonable opportunity to secure financing for these projects.

    Compared to other utilities in the region, Arizona utilities do not have a strong track record of integrating renewable resources into their long-term plans. As of 2017, both Arizona Public Service (APS) and Tucson Electric Power (TEP) only generated seven percent of their power from renewable energy.

    Read More at AZ Big Media.

    Arizona Corporation Commission Arizona Public Service Public Utility Regulatory Policies Act Tucson Electric Power
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