Arizona Public Service (APS) has filed its new 2026 Integrated Resource Plan (IRP) with the Arizona Corporation Commission, organizational officials say, with an eye toward solar and energy storage.

The new plan heavily prioritizes energy resiliency and affordability going forward, as commercial and residential energy bills continue to spike. APS representatives put the plan together using a range of possible energy usage scenarios, cobbling together a plan that will meet demand while keeping ratepayer costs low for the long-term future.

The plan aims to hold large energy load users, including data center developers, responsible for their own energy costs, rather than distributing those rate spikes. Relying on data analysis, the plan accounts for potential customer demand over the course of the next 15 years.

“Reliability is nonnegotiable,” says Mike Eugenis, APS director of resource planning. “We developed this IRP by evaluating a wide range of scenarios over the next 15 years to ensure APS is prepared to serve customers who count on us for reliable and affordable service throughout Arizona.”

APS currently forecasts that annual energy usage will double from 2026 levels by 2041, sitting at an estimated peak demand of 14.5 GW. In the group’s plans to meet that level of demand, renewable energy is taking center stage.

Heavy on solar and storage

As one of the sunniest regions in the U.S., Arizona is in prime position to make the most out of solar and battery storage assets. APS says the next few years will be crucial, as it plans to have 6 GW of battery storage on its system by 2030.

APS will also continue evaluating future energy technologies for higher levels of efficiency and reliability. Specifically, the company’s latest report cited new nuclear generation, geothermal energy, and additional battery storage methods as potential candidates going forward.

“A reliable electric system requires a diverse mix of resources that can serve customers under a wide range of conditions and all hours of the day, including periods when solar, wind and battery resources may not be available to meet customers’ needs,” Eugenis says.

The company also forecasts that traditional on-demand resources, including natural gas generation, will continue to play an important role in the Valley State’s energy mix. However, APS says the current energy forecast for Arizona is a guide, rather than a blueprint, going forward.

“The near-term actions in the plan, particularly those in the next three years, reflect projects and decisions with greater certainty,” APS says. “Recommendations for resources in the years beyond reflect the best information available today about customer energy demand, technology, fuel prices, construction costs, resource availability and other conditions.”

— Solar Builder magazine