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. A sole source of any one energy type is very costly.
Of the generation alternatives studied, the natural gas generating units provide the best option to provide 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, AEPCO’s 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.