27
February
2023
|
09:08 AM
America/Denver

SRP Issues 2023 All-source RFP for New Power Generation Resources

SRP is seeking at least 200 MW by May 2026 and an additional 300 MW by May 2027

As Phoenix and Maricopa County lead the nation in population growth and economic development, SRP continues to experience significant increases in customer electricity demand. Meeting this growth with adequate power supply is now met with new challenges which include supply chain issues, planned coal retirements, and decreased hydroelectric generation from the drought-stricken Colorado River.

To help meet projected demand and ensure SRP can maintain reliable electric service for customers beginning in summer 2026, SRP is issuing an All-Source Request for Proposals to seek additional power resources that can provide at least 200 megawatts (MW) during the summer peak to be online as early as May 1, 2026, and at least an additional 300 MW by May 1, 2027. This is enough to power more than 112,000 average size homes.

SRP will evaluate and compare proposals that meet the minimum requirements identified in the RFP, including SRP self-developed resource options. SRP currently serves customer energy needs with a diverse fuel mix including nuclear, coal, hydroelectric, natural gas, battery storage and renewable resources including solar, wind, biomass, and geothermal.

To the extent the total requested capacity SRP is seeking is not satisfied by carbon-free resource proposals, SRP may procure up to an additional 500 MW of carbon-free resources. This is contingent on the projects being feasible, cost effective, and if SRP can accommodate these additional resources while maintaining customer reliability.

Resource projects selected through this all-source RFP process will also support SRP’s 2035 Sustainability Goals by adding to new renewable-resource and storage system projects SRP has under contract and expects to have online by 2025. These include 2,025 MW of added solar resources, 161 MW of wind energy, and over 1,100 MW of battery storage systems. SRP has among the largest utility-scale renewable and battery storage investments in the Western U.S.

“SRP is proud of our diverse portfolio of reliable, sustainable and affordable power generation resources,” said Grant Smedley, Director of Resource Planning at SRP. “We must continue to strategically add new resources that help SRP decarbonize our portfolio while meeting our customers’ growing needs in the Valley.”

This winter season, SRP welcomed a new utility-scale solar resource now operating on its power grid, and announced two new utility-scale battery storage projects that will come online in 2024. Additionally, three new solar-powered storage projects will begin benefitting SRP customers this summer. These will include the largest solar-plus-storage facility in the state, the Sonoran Energy Center.

SRP has a long history of stewardship associated with the water and power resources it provides to the Valley and a strong commitment to the environment. As part of this commitment, SRP plans to reduce its carbon dioxide emissions intensity by 65 percent by 2035 and by 90 percent by 2050 compared to 2005 levels. More detail and documented progress on SRP’s renewable energy goals can be found by reviewing SRP’s 2035 Sustainability Goals.

Respondents to the all-source RFP can view the details and register here: http://srpnet.com/AllSourceRFP. Registration enables access to all RFP-related documents. As outlined, SRP will offer a web conference for respondents on March 20, 2023, and is requesting bid proposals by April 27, 2023. SRP anticipates short-list selection by Fall 2023.

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About SRP

SRP is a community-based, not-for-profit public power utility and the largest electricity provider in the greater Phoenix metropolitan area, serving approximately 1.1 million customers. SRP provides water to about half of the Valley’s residents, delivering more than 244 billion gallons of water (750,000 acre-feet) each year, and manages a 13,000-square-mile watershed that includes an extensive system of reservoirs, wells, canals and irrigation laterals.