APS Customers Get Solar after Sunset with Major Clean-Energy Projects

APS announces one of the largest battery storage initiatives in the
United States

PHOENIX–(BUSINESS WIRE)–Customers of Arizona Public Service (APS) will soon power their homes
and businesses with solar after sunset thanks to three major
clean-energy initiatives.

APS will add battery storage to its existing fleet of solar power
plants, build new solar plants with storage, and use storage to deliver
cleaner energy to customers at times of peak energy usage. As a result,
APS customers will be able to use solar energy even after the sun goes
down. Family dinners, prime-time television and bedtime reading lights
will all be powered by a cleaner energy mix.

Arizona is already a national leader in solar energy. The challenge is,
no one has figured out how to stop the sun from setting at night,” said
APS Chairman and CEO Don
Brandt
. “As storage technology improves and declines in cost, we
will increasingly be able to store the power of the sun cost-effectively
to deliver when our customers need it.”

Large-scale battery storage is a critical step on the path to reliable
and affordable clean-energy solutions,” said Pat Graham, State Director,
The Nature Conservancy in Arizona. “Clean energy and clean air are
important to the health of our communities and the lands and water upon
which all life depends.”

APS already provides customers with an energy mix that is 50 percent
clean and getting cleaner. The initiatives announced today will add 850
megawatts of battery storage and at least 100 megawatts of new solar
generation by 2025, for a total of 950 megawatts of new clean-energy
technology. This represents a major down payment on Arizona’s continued
progress toward an energy future that is clean, reliable and affordable.

The Energy Storage Association congratulates APS for cementing its
leadership among utilities by integrating energy storage into its system
operations and realizing savings for consumers,” said Kelly
Speakes-Backman, CEO of ESA.
We especially applaud APS for partnering with third parties in this
effort, sending a strong signal for businesses to invest in energy
storage in Arizona. We look forward to that day when energy storage is
the central tool for maintaining a reliable and resilient, efficient,
sustainable and affordable grid.”

Adding Storage to Existing Solar Plants. APS owns and operates
large-scale solar plants throughout the state that will be upgraded with
200 megawatts of battery storage systems. A team led by Invenergy
will install six of the new battery systems at solar plants in Maricopa
County and Yuma to be in place by 2020. The remaining two upgrades will
be completed by 2021.

Building New Solar Storage Plants. APS plans to build an
additional 500 megawatts of solar storage and stand-alone battery
storage by 2025. The first project will be a 100-megawatt solar-storage
plant. APS expects to issue a request for proposals this summer. APS is
already partnering with Tempe-based First
Solar
to build a first-of-its-kind solar-plus-storage
project
that will be one of the largest in the country when
completed in 2021.

Delivering More Clean Energy When Needed. When solar production
declines late in the afternoon and energy usage is still high,
electricity companies need a reliable, flexible source of power to serve
their customers. Traditionally, that source has been exclusively natural
gas. Today’s announcement signals a new direction: APS will use 150
megawatts of solar-fueled battery storage to meet part of the demand
when energy usage peaks.

The battery storage will come from two projects: a 100-megawatt battery
provided by AES,
and a 50-megawatt battery by Invenergy.
Additional natural gas will come from a contract with Calpine
for 463 megawatts of energy; however, instead of a traditional 20-year
contract, the purchase agreement with Calpine is seven years, allowing
APS the flexibility to take advantage of cleaner technologies in the
future as they mature. This is part of a long-term clean-energy
transition in which renewable and storage technologies will play an
increasingly important role.

Today’s announcement continues APS’s record of leadership in solar
storage technology. Solana
Generating Station
in Gila Bend was the largest thermal
solar-storage plant in the world when it began operation in 2013 and has
been providing 100 percent of its generation output to APS customers
since.

For more information on APS’s solar storage and other clean-energy
advances, visit www.azenergyfuture.com.

APS
serves about 2.7 million people in 11 of Arizona’s 15 counties, and is
the Southwest’s foremost producer of clean, safe and reliable
electricity. Using a balanced energy mix that is 50 percent carbon-free,
APS has one of the country’s most substantial renewable energy
portfolios, and owns and operates the Palo Verde Generating Station, the
country’s top power producer and largest producer of carbon-free energy.
The company is also a proven leader in introducing technology and
services that offer customers choice and control over their energy
consumption. With headquarters in Phoenix, APS is the principal
subsidiary of Pinnacle
West Capital Corp
. (NYSE: PNW).

Contacts

APS
Media Contact: Jenna Rowell, (602) 250-3379
Analyst
Contact: Stefanie Layton, (602) 250-4541
Website: aps.com/newsroom

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