Arizona PPA Boasts Lowest Solar Prices in US


The Central Arizona Project, which pumps and distributes water throughout the state, has signed a 20-year PPA with AZ Solar 1, a deal that comes with the lowest solar prices in the US.

AZ Solar 1 will deliver 83,500 MWh of electricity at 2.49 cents per kWh. According o, this would denote an AC capacity factor of 32%, and a DC capacity factor ranging of anywhere from 19-27% with DC:AC ratios of 1.7 and 1.2, respectively.

The site states that 2.49 cents per kWh is the lowest price for solar power in the US to date. There is a deal pending in Austin, Texas at 2.1 cents per kWh, but details of that contract have not yet been made public.

Central Arizona Project’s PPA with AZ Solar 1 calls for the first delivery of electricity to begin December 31, 2020. Power for the Project currently comes from the Navajo Generating Station, the oldest coal-fired plant in the US and one of the largest. It is scheduled to be decommissioned in 2019.

Other recent PPAs of note include that of Facebook and Adobe. In March it was announced that the two companies signed PPAs with Enel Green Power North America (EGPNA), the renewable energies division of the Enel Group, for the sale of energy produced by Enel’s 320 MW Rattlesnake Creek wind farm. Facebook’s deal with Enel expands upon the previous agreement for the purchase of Rattlesnake Creek’s output, increasing the renewable power supply to Facebook’s data center in Papillion, Nebraska, upon its expansion.

Under the agreement with Adobe, the power and renewable energy credits from a 10 MW portion of Rattlesnake Creek will be sold to the software company through a bundled power purchase agreement beginning in 2019 and running through 2028. In 2029, the plant’s total output will then supply Facebook’s data center, enabling a 100% renewable power supply to that location.

And in February it was announced that, under a PPA with Georgia Power, photovoltaic systems provider First Solar will begin developing and building the largest standalone PV solar plant in the southeastern United States. Once completed, the 200-MW plant is expected to generate more than 450 GWh of electricity each year.

The plant will be located on 2,000 acres in Twiggs County near Warner Robins, Georgia, about two hours southeast of Atlanta. First Solar says they plan to use more than 500,000 advanced technology thin film solar modules for the facility.


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