Arizona Public Service Company Secures Conditional $1.8 Billion Loan for Clean Energy Expansion
This system will play a crucial role in stabilising the grid as more renewable sources are added.
Image for illustration purposes.
The U.S. Department of Energy‘s Loan Programs Office (LPO) has announced a conditional commitment for a $1.81 billion loan guarantee to Arizona Public Service Company (APS), Arizona’s largest electric utility. This financial backing aims to support APS in its ambitious clean energy transition, benefiting its 1.4 million customers through reduced electricity bills and enhanced grid reliability.
The loan will facilitate APS’s investments in renewable power generation, energy storage systems, and transmission infrastructure. A key project is the Agave Battery Energy Storage System, a 150-MW facility designed to integrate renewable energy, manage peak demand, and store excess power.
APS plans to use the funds for additional battery storage facilities, new renewable energy projects (including solar and wind), and transmission upgrades. These improvements are essential for enhancing grid flexibility, reducing operational costs, and improving system reliability, particularly during extreme weather events.
The initiative aligns with APS’s goal of delivering 100% clean and carbon-free electricity by 2050, with interim targets of 65% clean energy and 45% renewable energy by 2030. It also supports the planned retirement of coal-fired generation assets, marking a significant shift towards sustainable power production. Economic benefits are substantial, with the project expected to create approximately 960 construction jobs and 20 permanent positions.
Source: Department of Energy
