Tucson Electric Power to boost clean-energy shift, sets new 'net zero' goal

Tucson Electric Power in its latest resource plan says it will accelerate its shift to clean-energy resources to support growth and maintain affordable, reliable service with a new goal: “net zero” direct greenhouse gas emissions by 2050.

But TEP says it plans to add new natural-gas generating capacity “to help offset coal-plant retirements and support higher use of variable wind and solar energy” — despite the urging of environmental groups who oppose new gas additions and want TEP to add more renewable-energy storage instead.

TEP’s 2023 Integrated Resource Plan, filed Wednesday with the Arizona Corporation Commission, describes how the company expects to satisfy customers’ increasing energy needs over the next 15 years while reducing carbon-dioxide emissions and other environmental impacts.

TEP, which serves more than 440,000 local customers, expects to add 2,240 megawatts of wind and solar generation and 1,330 MW of energy storage by 2038, as well as 400 MW of natural-gas turbines.

The utility said the balance of resources was determined to be the most cost-effective way to maintain reliability while achieving an 80% reduction in CO2 emissions by 2035, a goal set in TEP’s 2020 resource plan.

TEP’s new resource plan boosts the combined wind, solar and storage additions proposed in its previous 2020 plan by 50%, to 1,500 MW by 2030.

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Susan Gray, TEP’s president and CEO, said the new net-zero goal was intended to be “ambitious and aspirational,” requiring advancements in storage, carbon-capture and other technologies, as well as energy-smart conservation behaviors.

Meanwhile, TEP sister utility UniSource Energy Services plans to more than double its electric-energy resources over the next 15 years with new wind, solar, natural gas and storage systems.

UniSource’s plan calls for the addition of 350 MW of solar and wind resources, 200 MW of natural gas turbines and 225 MW of energy storage systems by 2038. UniSource, which serves about 19,000 customers in Santa Cruz County and about 80,000 in Mohave County, currently has about 300 MW of generating capacity.

TEP and UniSource’s resource plans will be reviewed by the ACC in a process that includes public comment.

For updates on that process and more information about TEP’s latest resource plan, visit tep.com/2023-irp; for UniSource information go to uesaz.com/2023-irp.