TUCSON, Ariz.–(BUSINESS WIRE)–Tucson Electric Power (TEP) is building a large wind farm that will help

the company more than double its use of renewable energy by 2021.

The Oso Grande Wind Project in southeastern New Mexico will generate up

to 247 megawatts (MW), enough to power nearly 100,000 homes. When

combined with other existing and planned wind and solar projects, Oso

Grande will give TEP enough clean energy to power more than two-thirds

“This cost-effective system will become TEP’s largest renewable energy

resource, accelerating our progress toward our clean energy goals while

allowing us to help customers achieve their own sustainability

objectives,” said David G. Hutchens, TEP President and CEO.

When the project is complete, TEP’s renewable energy production is

expected to exceed 28 percent of its retail sales. That level would more

than double the state requirement for 2021 while approaching the 30

percent goal TEP has planned to achieve by 2030.

“This new wind farm will complement our many solar arrays, producing

some of its strongest output during the morning and evening hours when

we have little or no solar production,” said Erik Bakken, Vice President

of System Operations and Environmental. “We’re building a balance of

solar and wind resources that better matches our customers’ energy use

patterns, helping us deliver more clean energy for less money.”

EDF Renewables North America will develop the system for TEP through a

build and transfer agreement for a cost of approximately $370 million.

The project was selected through a competitive bid process and will

qualify for federal tax credits that are expected to recoup more than

two thirds of its cost over its first 10 years of operation, savings

that will be passed along to TEP’s customers.

“We’re capitalizing on a unique opportunity to develop this valuable

resource at an attractive cost, helping us maintain affordable service

for our customers,” Hutchens said.

The Oso Grande project will include 61 highly-efficient turbines

installed on 24,000 acres southeast of Roswell, N.M. The system’s output

will be delivered to Tucson through existing transmission lines that

connect to TEP’s transmission system in eastern Arizona. Construction is

expected to begin later this year, and the system should be online by

Oso Grande will become TEP’s single largest dedicated renewable energy

resource. Today, the company’s largest system is the 71-MW Red Horse

wind and solar system near Willcox, Ariz.

TEP’s renewable energy portfolio currently includes 277 MW of

community-scale solar resources and 80 MW of wind systems, complemented

by 232 MW of rooftop solar arrays installed by customers. Those

resources produced energy equivalent to about 13 percent of TEP’s retail

sales in 2018 – enough to power more than 117,000 homes for a year.

Over the next two years, TEP’s clean energy resources will be boosted by

the Oso Grande wind farm and two other large new projects expected to

  • The 99-MW Borderlands Wind Project in western New Mexico. This project
    is being developed through a power purchase agreement with Borderlands
    Wind LLC, a subsidiary of NextEra Energy.
  • The Wilmot Energy Center in southeast Tucson, which will include a
    100-MW solar array and a 30-MW battery storage system being developed
    through a PPA with NextEra Energy.

TEP provides safe, reliable electric service to approximately 425,000

customers in Southern Arizona. For more information, visit tep.com. TEP

and its parent company, UNS Energy, are subsidiaries of Fortis Inc.,

which owns utilities that serve more than 3 million customers across

Canada and in the United States and the Caribbean. For more information,

Joseph Barrios, (520) 884-3725

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