Arizona is making strides towards reducing its reliance on fossil fuels and becoming a leader in renewable energy generation. As the fifth top producer of solar energy in the United States, Arizona is now embarking on a new project that will significantly increase the state’s energy storage capabilities. A new Tesla Megapack energy storage system is currently under construction by utility company Salt River Project (SRP) and energy system constructor Plus Power LLC in the Sierra Estrella region, which is set to become the largest energy storage system in the state upon completion in 2024.
Battery energy storage is one of the most helpful new technologies that utilities can employ to reduce fossil fuel dependence and increase grid reliability. By holding onto excess power generated during lulls in demand, power companies can more easily address peak demand and reduce costs. Tesla’s energy storage system can come into play to help the transition to renewable energy sources in Arizona. By holding power generated from solar energy projects, the new Tesla Megapack can prevent fossil fuel plants from having to be turned on, primarily addressing peak power in the evening in the Arizona summer.
According to SRP, the new Tesla Megapack energy storage system will have a capacity of 1,000MWh, enough energy to power 56,000 homes for four hours. The project was set to cost $400 million, but this does not account for the recent Tesla Megapack price cut. The new energy storage system will help SRP transition to renewable energy sources by preventing the need for fossil fuel plants to be turned on during peak power demand in the evenings.
Arizona is already making significant strides in renewable energy generation, with solar energy constituting a considerable 9% of its overall power generation. While still receiving a significant 43% of its energy from natural gas, other fossil fuels like oil and coal are quickly shrinking in use, representing just over 13% of power generation combined. Nuclear power accounts for 28% of Arizona’s energy, while hydroelectric and wind energy account for 5% and 1%, respectively. The state’s six primary energy sources account for 99% of energy generation, with hydroelectric pump storage, biomass, and petroleum accounting for the remaining 1%.
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With the new Tesla Megapack energy storage system coming online in 2024 and three other energy storage systems coming online later this year, as much as 10% of SRP’s power supply will come from energy storage. This is a significant step towards reducing reliance on fossil fuels and transitioning towards renewable energy sources. As battery energy storage technology continues to improve and become more cost-effective, we can expect to see more projects like this across the country, driving the transition to clean energy.
