AEPCO is constructing natural gas turbines (LM6000s) at Mohave Energy Park, and each turbine is capable of generating up to 49 megawatts of electricity based upon the elevation of the project site. 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.
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.
In 2024, one of AEPCO’s battery storage projects was completed in Fort Mohave. More battery storage projects are anticipated in the coming years.
While AEPCO and their Member Cooperatives, including MEC, have already added a significant amount of battery storage throughout the service territories, 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 AEPCO considers 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. 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.
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 the delivery of 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 and intermittent renewable energy across the Mohave region.
The Member Cooperatives continue to see a strong member demand for electricity. The MEC service territory continues to see a population increase and is experiencing industrial and manufacturing growth from large companies establishing and expanding operations in the region.
This growth causes 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 MEC to reliability meet the demand for electricity in the very near future.
AEPCO is 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, AEPCO 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 in Mohave County was the best option to meet near and long-term demand in the region.
In addition, together with our renewable solar and battery energy storage projects located in Fort Mohave, the simple-cycle generating units at 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.
