Image: Salt River Project
Salt River Project has announced a massive power purchase agreement with NextEra Energy Resources to develop 3 GW of new solar and 1 GW of battery energy storage in Arizona.
The tender serves as part of the utility’s strategy to phase out coal production by 2032. This capacity is expected to supply 675,000 households with electricity during peak production. The partnership includes several facilities across the state that use bifacial modules and tracking systems to capture energy in the southwestern environment.
The 1 GW of battery energy storage is intended to manage the evening period when solar energy production decreases and residential demand increases.
By moving solar energy to later hours, the Salt River Project aims to reduce reliance on natural gas power plants and maintain grid reliability during heat events. The utility expects these projects will generate tax revenue for local jurisdictions and create construction jobs over a three-year period.
According to the Solar Energy Industries Association Arizona reached more than 11.4 GW of installed solar capacity in early 2026, with more than 9,700 people employed in the state sector. Solar energy currently accounts for about 16% of the electricity generated in the state. Arizona is expected to add 13.8 GW of capacity over the next five years.
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