Canadian Solar subsidiary Recurrent Energy has successfully secured a 20-year tolling agreement with Arizona Public Service Company (APS) for the development of the Papago Storage energy project. This significant achievement underscores the growing importance of energy storage as a complement to solar capacity and as a solution for surging electricity demand.
Key Project Details
The Papago Storage project entails a substantial 1,200 megawatt-hour (MWh) energy storage capacity and is poised to become the largest standalone energy storage project in Arizona. The project is planned to be constructed in Maricopa County, with construction anticipated to commence in the third quarter of 2024 and commercial operations targeted for the second quarter of 2025. This project marks an essential step in Arizona’s efforts to meet the mounting electricity demand while also reinforcing its solar energy capacity.
Addressing Electricity Demand
The tolling agreement for Papago Storage comes at a time when various U.S. states, including Arizona, are grappling with record electricity demand. The introduction of this energy storage capacity is expected to synergize with Arizona’s expanding solar energy capacity, offering a robust solution to effectively manage peak electricity consumption.
Recurrent Energy’s Expertise
Recurrent Energy, a subsidiary of Canadian Solar, has a global reputation as one of the leading utility-scale solar and battery storage platforms. With an impressive track record of delivering 9 gigawatts (GW) of solar and 3 gigawatt-hours (GWh) of battery storage power plants across six continents, Recurrent Energy is well poised to contribute significantly to the energy landscape. In 2022 alone, the company added 2 GWh of energy storage capacity in the U.S., further solidifying its position as one of the country’s foremost energy storage developers.
Shaping a Renewable Future
Shawn Qu, Chairman, and CEO of Canadian Solar, highlighted the significance of this project in advancing renewable energy goals. He stated, “This landmark project – Papago Storage – will give Arizonans more renewable energy every day. Recurrent Energy is delighted that Arizona Public Service selected Papago Storage via its rigorous competitive procurement process to support its 1.3 million customers’ growing need for affordable and reliable energy storage.”
A Noteworthy Milestone
The tolling agreement award for Papago Storage was the outcome of APS’s All Resource Request for Proposal (RFP) conducted in May 2022. APS, serving over 1.3 million customers in 11 counties, has committed to transitioning to 100 percent clean and carbon-free energy by 2050.
The Papago Storage project is anticipated to deliver power to approximately 244,000 homes for four hours each day upon reaching operational status. As the energy landscape continues to evolve, projects like Papago Storage play a pivotal role in enhancing grid stability, supporting clean energy adoption, and meeting the energy demands of a sustainable future.