Arizona Electric Power Cooperative, Inc. (AEPCO) (also known as Arizona Generation & Transmission Cooperatives) and Mohave Electric Cooperative, Inc. (MEC) are partnering to plan for the future of the Mohave region. Together, the Cooperatives are planning for new quick start electric natural gas generating units to be constructed. The new natural gas generating units will provide reliable, affordable energy for MEC members.
AEPCO is the generation, transmission, and energy services provider for electric distribution cooperative utilities, including MEC.
MEC is a member-owner of AEPCO and serves as the local distribution service provider and operator in the Mohave County area.
Quick start, flexible natural gas generation will help stabilize the grid with on-demand electricity that supplements power from renewables, like the solar fields currently located at the Mohave Energy Park. A more stable energy supply means more predictable and affordable energy for MEC members.
The construction of the proposed Mohave Energy Park natural gas generating units will undergo all applicable federal and state permitting processes, including extensive environmental and air quality reviews.
Natural gas is a flexible energy resource that provides reliable service when renewables like solar and wind are not available. The natural gas generating units at Mohave Energy Park will help protect public safety by meeting the demand for electricity in our region, even during severe weather events.
The construction of the new natural gas generating station will provide an economic boost to the Mohave region.
The Mohave Energy Park will be located in Mohave Valley, Arizona, near existing electrical and natural gas infrastructure. The selection of this location was based upon available land options, proximity to natural gas transportation, availability of water, and interconnections to existing MEC electric infrastructure.
We looked at multiple potential locations to see if they meet the criteria AEPCO and MEC needs to supply and deliver safe, reliable power and have adequate resources:
• Located near MEC infrastructure to ensure power for MEC’s electric load and allow for MEC to provide emergency backup power to the community.
• Adequate access to natural gas and water.
• AEPCO is working on obtaining the land.
The Mohave Energy Park Project will entail the construction of resources for two or four simple cycle units, depending on future energy needs.
The Cooperatives are constructing natural gas turbines (GE LM6000s) and each turbine is capable of generating up to 49 megawatts of electricity. That maximum output can vary slightly during the year due to changes in temperature and humidity. Each natural gas turbine is also capable of ramping up from zero production to full production within 10 minutes. That means these turbines are extremely quick and flexible in responding to meet peak demand, or to respond in different system conditions, like cloudy days or extreme weather. These turbines, however, are not designed to run around-the-clock like larger steam generators or combined-cycle natural gas generators.
Energy from Mohave Energy Park will flow to a transformer and will be delivered to homes and businesses within the MEC service territory. This generation technology has been tried and true across the world. In addition, the Cooperatives have experience with this technology, providing operational familiarity and common spare parts to reduce maintenance costs.
Additional components associated with the project will aid in the generation and distribution of electricity.
A sub-transmission line will be used to deliver energy from the Mohave Energy Park to Mohave Electric Cooperative members.
MEC and AEPCO are working with a natural gas transporter to secure the delivery of natural gas to the generating units at Mohave Energy Park.
A new substation is being constructed to aid in the delivery of power to MEC members.
The health and wellbeing of our members and community are paramount. That is why MEC and AEPCO are utilizing Best in Class turbine technology and are going the extra mile to incorporate air emission controls to ensure the health and safety of all. In addition, the proposed natural gas generating units, will undergo all applicable county, federal and state permitting processes, including extensive environmental and air reviews.
The Cooperatives must file for and receive approval of necessary permits, ensuring future operations comply with applicable standards. This process is designed to protect the public from adverse health effects.
The facility will use an efficient air-cooling system that requires much less water usage than other technologies.
Simple cycle units, like the ones which will be utilized at the Mohave Energy Park, use significantly less water than other types of generation units.
The new natural gas generating units, which will be utilized at the Mohave Energy Park are equipped with air emissions controls, which reduce NOx emissions by 90% and CO emissions by 95%.
In addition, these new flexible natural gas generating units include air inlet filtration which removes a majority of the ambient particulate matter before ever passing through the natural gas turbine.
The Mohave Energy Park project is committed to following applicable guidance and will utilize silencing technology as necessary. Pictured is a predictive sound modeling contour.
The facility will have exterior lighting for safety and security. All outdoor light fixtures will be installed according to Mohave County requirements.
Arizona Electric Power Cooperative (AEPCO) and Mohave Electric Cooperative (MEC) are community-based, not-for-profit electric utilities. As Cooperatives, we strive to make decisions that are in the best interest of our members and the communities we have served for numerous decades.
When deciding how to meet the rapidly growing electricity needs of the area, the Cooperatives examined which generating resources could most reliably and cost-effectively meet our increasing demand for electricity. As a result of that review, the Cooperatives determined that adding natural gas generating resources was the best option to meet near-term regional and local demand for electricity in Mohave County, Arizona. In addition, in an MEC member opinion survey conducted in 2023, members overwhelmingly chose natural gas as their preferred choice for future power generation.
Below you will find answers explaining why installing natural gas generating units is the best solution to provide reliable, affordable and sustainable power into the future.
The Cooperatives are responsible for developing new reliable generation resources to meet growing demand for electricity in the areas they serve. When deciding on the best plan to address this demand, the Cooperatives examined which generating resources could both meet increasing demand for electricity and would improve local reliability, especially to support critical public services. As a result of that review, the Cooperatives determined that installing efficient simple-cycle natural gas generating units at Mohave Energy Park was the best option to meet near and long-term demand for electricity in the region.
In addition, together with our renewable solar and battery storage project, Mohave Energy Park will help transition the Cooperatives to a diversified energy portfolio, resulting in a more efficient, reliable and cost-effective mix of generation resources.
The Cooperatives continue to see a strong member demand for electricity. Our service territory continues to see a population increase and we are experiencing industrial and manufacturing growth from large companies establishing and expanding operations in the region.
This growth causes the Cooperatives’ peak electricity demand to increase, resulting in the need for additional generating capacity to meet these needs. A combination of this growth and the region's overall resource constraints means that without proper planning and the development of new generating capacity, it will be a challenge for the Cooperatives to reliability meet the demand for electricity in the very near future.
In 2022, a third-party energy consulting group, E3 Consulting, concluded that the Southwest is facing "a significant and urgent need" for new power resources due to growing demand for electricity and planned fossil fuel plant retirements. California officials reported a 1,700 MW potential shortfall in 2022, which, under emergency conditions, could leave millions of people without power.
Supply chain disruptions and other issues are also contributing to energy constraints. A U.S. Commerce Department investigation has shown negatively impacted solar panel supply chains, resulting in a substantial risk of delays and cost increases for new projects, particularly solar projects, in the region. Lithium costs are volatile, and the supply chain for batteries is also experiencing challenges, resulting in potential delays and higher costs.
The Cooperatives are constructing two natural gas turbines (GE LM6000s) at Mohave Energy Park, and each turbine is capable of generating up to 49 megawatts of electricity. That maximum output can vary slightly during the year due to changes in temperature and humidity. Each natural gas turbine is also capable of ramping up from zero production to full production within 10 minutes. That means these turbines are extremely quick and flexible in responding to meet peak demand, or to respond in different system conditions, like cloudy days or extreme weather. These turbines, however, are not designed to run around-the-clock like larger steam generators or combined-cycle natural gas generators.
The energy produced will be used within our service territory and community. It will not be contracted for sale to other states.
The Cooperatives have committed to adding over 200 MW of solar energy and 300 MW battery storage to our portfolio by 2025, based on a 2023 Integrated Resource Plan that considered a number of alternative generation resource additions to our power portfolio necessary to meet expected increasing demand for electricity.
Along with increased solar generation comes increased variability in power output, especially during cloudy conditions. The natural gas generating units at Mohave Energy Park will add quick-starting and fast-ramping power generation resources that can smooth out these fluctuations and ensure Cooperatives delivers consistent, reliable power to members.
Each gas turbine added as part of the Mohave Energy Park will be capable of rapid starts (within 10 minutes) and can quickly adjust to match changing electricity demand across the Mohave region. In addition, the flexibility of this technology allows the Cooperatives to operate just one or two turbines, when needed, in addition to our existing generating resources.
The Cooperatives are planning to add more battery storage projects in the coming years. We have already committed to adding over 300 MW of new battery technology capacity additions by 2025, which is among the highest of any cooperative in the country.
While we have already added a significant amount of battery storage, adding additional storage must be done strategically. Although battery storage helps to improve the performance of solar facilities by shifting some of the solar energy to hours when there is more demand for electricity, batteries are not a substitute for flexible natural gas turbines that can be tapped at any time. Natural gas turbines can vary output levels to meet any system condition, including emergencies and extreme weather.
When the Cooperatives consider investing in a new power generation resource, we carefully consider alternatives in the context of reliability. As a result, we are committed to incorporating battery storage safely and appropriately to help meet the energy needs of our members and community, while also incorporating new efficient natural gas turbines to diversify our power portfolio to improve reliability.
In evaluating options for the Mohave Energy Park, we used commercially available planning models to determine whether we could build the least-cost portfolio that could achieve the same reliability as the proposed natural gas units at the Mohave Energy Park. The results of the modeling indicated that the least-cost solution for meeting near and mid-term load growth and peaking needs was a combination of solar combined with natural gas turbines and potentially some additional battery storage installations in the future.
Of the generation alternatives studied, the natural gas generating units provide the best option to provide the Cooperatives with the flexibility necessary to ensure reliable power delivery. Even when modeling other scenarios, including higher natural gas prices and lower battery costs, natural gas turbines were selected to meet the flexibility needs required to ensure reliability.
As a result, the Cooperatives’ 2023 Integrated Resource Plan analysis demonstrates that installing natural gas generating units at Mohave Energy Park are the most prudent and practical decision, and it also is the best economic decision that provides the most value to Cooperative members.
The two new natural gas generating units at the Mohave Energy Park will have stacks approximately 65 feet tall, which is lower than other similar generating units in the state that average about 85 feet high. In addition, the stacks of these generating units will be significantly lower than those on the local South Point Energy Center on Courtwright Road, which are 225 feet tall.
Construction of the natural gas turbine project at the Mohave Energy Park will afford short-term benefits to local labor force and also to the local economy. The local economy will benefit from an increased need for housing, food, and services to support the overall construction workforce.
The construction process will include local, cost-competitive vendors of commodities and rental equipment. Any employees traveling for construction purposes will boost local economies through their travel, lodging, and meals. The project is expected to introduce approximately $10 million in local economic lift during the construction phase.
Additionally, on a long-term basis, Cooperatives expect to employ up to five full-time equivalent jobs to operate, secure, and maintain the facility.
The Mohave Energy Park represents a substantial investment in the Mohave area and will generate property taxes that are estimated to be nearly $5 million from 2025 through 2036.
Yes, the Mohave Energy Park will comply with all local, state, and federal air quality and environmental regulations that protect the health and wellbeing of the community. That is why the Cooperatives are utilizing best in class turbine technology and will incorporate air emission controls to ensure the health and safety of all.
The new natural gas turbines at Mohave Energy Park will comply with all local, state and federal air quality regulations, including requirements under the Clean Air Act. This will require the Cooperatives to file for and receive approval of an air permit, which ensures ongoing operations comply with these air quality standards. The final air quality permit will be a federally enforceable document containing applicable emission limits and standards that Mohave Energy Park is responsible for meeting, and will contain recordkeeping, monitoring and reporting conditions necessary to demonstrate compliance with all applicable requirements.
This process is designed to protect the public, including sensitive populations such as children and the elderly, from adverse health effects and to provide public welfare protection, including protection against decreased visibility and impacts to animals, crops, vegetation and buildings.
The project will utilize simple cycle, aero-derivative natural gas turbine technology. It does not rely on steam to produce power, and does not require water cooling, so it uses significantly less water than other types of generation. In fact, the new natural gas turbines at Mohave Energy Park will require about 1% of the water used in traditional steam plant operations or about 7% of the water used in water-cooled combined-cycle natural gas plant operation. What water is consumed will be used primarily for emission controls.
The Cooperatives anticipate that construction of the new natural gas generating resources will begin in 2025.
The Cooperatives selected the General Electric LM6000 aero-derivative turbine technology for the Mohave Energy Park based on the following factors: cost, reliability, flexibility, minimal environmental impact, and operational experience.
The LM6000 turbines are flexible resources that allow the Cooperatives to integrate more renewables into the power system and meet local electric capacity shortages. They can start up and change output quickly to support the variability of the system. In addition, the flexibility of this technology allows us to operate just one or both turbines when needed.
The LM6000 model is an industry leader in reliability with over 40 million operating hours and over 99% reliability. In addition, the Cooperatives have experience with the LM6000 technology, providing operational familiarity and common spare parts to reduce maintenance costs.
The Cooperatives must reliably meet near-term capacity needs, and the LM6000 turbines are available to provide power when needed, including during outages of other units, transmission line outages, or when limited-duration resources such as hydropower and battery resources are unavailable.
The Cooperatives will continue to solicit public input to provide an opportunity for community members to provide input and voice their concerns. \ In addition, various permitting processes include will include an opportunity for public input.
