AEPCO participated in an Energy and Environmental Economics (E3) study with other utilities to assess the resource adequacy situation in the Desert Southwest region now and in the future under various stress scenarios. The E3 study concluded that the Southwest is facing “a significant and urgent need” for new power resources due to growing demand for electricity. The need to build resources, such as the four natural gas generating units at Mohave Energy Park, is supported by the study to ensure continued reliability.
Supply chain disruptions and other issues are also contributing to energy constraints. The U.S. Department of Commerce investigation has shown negatively impacted solar panel supply chains, resulting in a substantial risk of delays and cost increases for new projects. Lithium costs are volatile, and the supply chain for batteries is also experiencing challenges, resulting in potential delays and higher costs.