US-based utility company Tucson Electric Power (TEP) is planning to purchase solar energy from a new system, which will be built, owned, and operated by an affiliate of NextEra Energy Resources.
TEP will buy energy for 20 years for less than $0.03/kWh, which is less than half as much as the company agreed to pay under similar contracts in recent years.
The 100MW solar array will be situated on a site owned by the City of Tucson in the US. The company will also build and operate a battery storage system on the same site, which will help integrate renewable energy resources into TEP’s local energy grid and provide up to 120MW hours of power The solar array and storage system are expected to be operational by the end of 2019.
Once completed, the project will be able to supply around 21,000 homes in Tucson. The city's electric power energy supply and renewable energy senior director Carmine Tilghman said: “This new local system combines cost-effective energy production with cutting edge energy storage, helping us provide sustainable, reliable and affordable service to all of our customers for decades to come.
“Focusing our resources on the development of cost-effective community scale systems allows us to provide more solar energy to more customers for less money.”
TEP is currently working to deliver at least 30% of its power from renewable resources by 2030.
Image: TEP aims to supply solar power to 21,000 homes in Tucson, US, from a new project. Photo: courtesy of Tucson Electric Power.