Tucson Electric Power (TEP), which provides electric service to approximately 420,000 customers in southern Arizona, plans to issue a request for proposals (RFP) this week for the design and construction of new wind energy resources that could power up to 31,000 homes annually.
TEP plans to seek cost-competitive bids for 100-150 MW of wind energy from resources that interconnect with TEP’s system or deliver power through a third-party firm transmission service.
The new wind energy will help TEP work toward its goal of delivering at least 30% of its power from renewable resources by 2030. Currently, nearly 11% of the power TEP delivers to retail customers comes from renewable resources. TEP anticipates adding 800 MW of new renewable capacity by the end of 2030, boosting its total renewable energy portfolio to approximately 1.2 GW.
Under TEP’s current plan, the company expects to contract with the successful bidder this year and begin receiving power from the new wind resource in 2021. TEP seeks to procure a cost-effective renewable resource for customers by capitalizing on market conditions that may not be available in the future while providing long-term continuity to renewable energy providers. Proposed projects must have a capacity of at least 100 MW.
The RFP will seek both long-term power purchase agreements and build-transfer agreements, in which TEP would purchase the system after construction is complete. TEP also will consider proposals that include the provision of ancillary services and supporting energy storage systems.
The RFP process is being managed by New Hampshire-based Accion Group. Potential bidders can register beginning on Thursday, Jan. 18, at Accion’s website, accionpower.com.
TEP currently has contract rights to 80 MW of operating wind power in Arizona and a 100 MW resource under development in western New Mexico. TEP has more than 560 MW of renewable energy resources, including solar PV, solar thermal, wind and biomass.
