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Pinnacle West (PNW) on Course to Attain 100% Carbon Neutrality
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Pinnacle West Capital Corporation’s (PNW - Free Report) unit Arizona Public Service Company (APS) has issued two requests for proposals (RFP) to accelerate generation of electricity via clean sources. This includes acquisition of both renewable energy and addition of peaking capacity resources as well as installation of more battery energy storage at the two existing APS solar plants.
Notably, these projects are open to all technologies including supply side and non-supply side resources and are likely to be in service during 2023 or 2024.
Details of the RFP
Through the first RFP, APS requests for renewable energy resources of nearly 300-400 megawatts (MW) per year to boost its clean energy portfolio. It will increase the company’s capacity to meet demand of 200-300 MW energy per year during peak times.
Per the second RFP, APS is requesting a total of 60 MW of battery storage additions to two of its existing AZ Sun Project solar facilities, namely the Red Rock and Chino Valley plants located in Pinal County and Yavapai County, respectively. Delivery of energy to these plants must begin by Jun 1, 2023.
Long-Term Goals
APS aims to add more renewable and clean energy sources to its generation portfolio over the long term and aims for carbon neutrality by 2050. The subsidiary’s recent announcements are in line with its target of generating 65% clean energy by 2030 with 45% renewable energy as well as achieving 100% clean energy target by 2050.
Pinnacle West unit is also committed to shut down all its coal-fired generation units by 2031, seven years earlier than originally planned to meet its carbon neutrality target.
The company also has many future expansion projects in its pipeline that will enable it to cater to higher demand for utility services in its territory. To successfully complete all its planned projects, the utility expects to invest $1,650 million and $1,725 million in 2021 and 2022, respectively.
Moreover, the company plans to include more than 300 MW of energy storage from 2022 through 2030, annually. This will help minimize the need for additional gas resources and allow higher renewable utilization. Also, it can maintain reliability of the system by installing energy storage of longer duration.
These initiatives reflect Pinnacle West unit’s focus on clean sources like natural gas and energy storage solutions that support development and usage of more renewable sources as well as modernization of the electric grid that backs more renewables and lowers the possibility of outages.
Renewable Sources in Focus
Per a recent U.S. Energy Information Administration (EIA) report, a transition of the utility operators toward clean energy sources is quite evident. Per EIA, electricity generation from renewable energy sources will jump from 18% in 2019 to 20% in 2020 and again to 22% in 2021. The expansion of renewables’ share in total generation is the result of planned additions to wind and solar generating capacity.
The increasing usage of renewable source to generate electricity is prompted by a rise in awareness of the harmful effects of pollution and the usage of new technology, which made power generation from renewable sources cheaper and more reliable. The large battery storage projects in developmental stages ensure that the power generated from renewable sources is available to customers 24x7.
Other utilities like Xcel Energy (XEL - Free Report) , Duke Energy (DUK - Free Report) and DTE Energy (DTE - Free Report) among others also have plans chalked out to achieve net-zero emissions within 2050.
In the past three months, shares of the company have rallied 9.9%, outperforming the industry’s 4.7% growth.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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Pinnacle West (PNW) on Course to Attain 100% Carbon Neutrality
Pinnacle West Capital Corporation’s (PNW - Free Report) unit Arizona Public Service Company (APS) has issued two requests for proposals (RFP) to accelerate generation of electricity via clean sources. This includes acquisition of both renewable energy and addition of peaking capacity resources as well as installation of more battery energy storage at the two existing APS solar plants.
Notably, these projects are open to all technologies including supply side and non-supply side resources and are likely to be in service during 2023 or 2024.
Details of the RFP
Through the first RFP, APS requests for renewable energy resources of nearly 300-400 megawatts (MW) per year to boost its clean energy portfolio. It will increase the company’s capacity to meet demand of 200-300 MW energy per year during peak times.
Per the second RFP, APS is requesting a total of 60 MW of battery storage additions to two of its existing AZ Sun Project solar facilities, namely the Red Rock and Chino Valley plants located in Pinal County and Yavapai County, respectively. Delivery of energy to these plants must begin by Jun 1, 2023.
Long-Term Goals
APS aims to add more renewable and clean energy sources to its generation portfolio over the long term and aims for carbon neutrality by 2050. The subsidiary’s recent announcements are in line with its target of generating 65% clean energy by 2030 with 45% renewable energy as well as achieving 100% clean energy target by 2050.
Pinnacle West unit is also committed to shut down all its coal-fired generation units by 2031, seven years earlier than originally planned to meet its carbon neutrality target.
The company also has many future expansion projects in its pipeline that will enable it to cater to higher demand for utility services in its territory. To successfully complete all its planned projects, the utility expects to invest $1,650 million and $1,725 million in 2021 and 2022, respectively.
Moreover, the company plans to include more than 300 MW of energy storage from 2022 through 2030, annually. This will help minimize the need for additional gas resources and allow higher renewable utilization. Also, it can maintain reliability of the system by installing energy storage of longer duration.
These initiatives reflect Pinnacle West unit’s focus on clean sources like natural gas and energy storage solutions that support development and usage of more renewable sources as well as modernization of the electric grid that backs more renewables and lowers the possibility of outages.
Renewable Sources in Focus
Per a recent U.S. Energy Information Administration (EIA) report, a transition of the utility operators toward clean energy sources is quite evident. Per EIA, electricity generation from renewable energy sources will jump from 18% in 2019 to 20% in 2020 and again to 22% in 2021. The expansion of renewables’ share in total generation is the result of planned additions to wind and solar generating capacity.
The increasing usage of renewable source to generate electricity is prompted by a rise in awareness of the harmful effects of pollution and the usage of new technology, which made power generation from renewable sources cheaper and more reliable. The large battery storage projects in developmental stages ensure that the power generated from renewable sources is available to customers 24x7.
Other utilities like Xcel Energy (XEL - Free Report) , Duke Energy (DUK - Free Report) and DTE Energy (DTE - Free Report) among others also have plans chalked out to achieve net-zero emissions within 2050.
Zacks Rank
Pinnacle West currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
In the past three months, shares of the company have rallied 9.9%, outperforming the industry’s 4.7% growth.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>