SRP adds geothermal to diverse renewable portfolio
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Arizona Falls, a low-impact hydroelectric facility built on the Arizona Canal Network, contributes to Salt River Project's renewable portfolio, and demonstrates renewable energy in action. (Photo courtesy of SRP)
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While many utilities offer their customers green energy from one or two sources, the Salt River Project's EarthWise Energy program seems to approach renewable resources with the eye of a collector.
The Phoenix-based power supplier's most recent acquisition is 50 MW of geothermal power and credits from geothermal plants in California's Imperial Valley. The agreement with TransAlta Energy Marketing, US added to a portfolio that already included solar, landfill gas, wind and low-impact hydroelectric generation. "When we launched EarthWise Energy, the focus was on a mix of renewable technologies to make the most of the environmental benefits," said Environmental Initiatives Manager Lori Singleton.
EarthWise Energy was launched four years ago when SRP's board of directors approved $29 million to fund a renewable energy program. Standard electricity rates remained the same, but customers could opt to spend an extra $3 per 100 kWh on their monthly bills to fund the development of additional renewable energy sources.
Program adds large purchases to small installed projects
The program's first renewable kilowatts came from two 100-kW photovoltaic stations on SRP's Santan Generating Station. SRP later built another 200-kW system at its Agua Fria Generating Station. The Santan system was recently relocated and another 200 kW array was added to it. PV panels atop the City of Mesa library and the City of Phoenix Park ‘n' Ride add another 125 kW to the agency's solar holdings for a total of 725 kW of installed power.
The Tri-Cities Landfill Gas Generating Facility went online in July 2001, providing SRP with 4 MW of power from a resource that would otherwise be burned off and released into the air. Located at the Salt River Pima-Maricopa Indian Community, the facility was the first of its kind in Arizona and the only one in the country on an Indian reservation.
The unique low-impact hydroelectric plant SRP built on the 130-mile Arizona Canal Network generates 750 kW and takes renewable energy back to its roots. The site generated power more than 100 years ago. A hydroelectric turbine installed at the Arizona Falls site harnesses the power from the canal's natural 20-foot drop in elevation.
Wind power, like geothermal, is a recent addition to SRP's renewable energy collection. Last October, SRP contracted with Public Service Company of New Mexico to buy 50 MW of power from PNM's New Mexico Wind Energy Center. "SRP has a longstanding relationship with PNM so that made it easy to put together the deal," Singleton said.
Both the wind and geothermal are unique in that they are firm power purchases, she added. Such contracts help to mainstream renewable energy into the resource mix and help meet peak power needs in the summer months.
Customers' motives drive marketing plan
Currently, more than 4,500 SRP residential customers pay the small premium for clean energy from SRP's assortment of renewable resources. Also, 35 Phoenix businesses participate in the program, including one Maricopa County court facility and the Phoenix Zoo, which runs its holiday light display on EarthWise Energy.
Like any avid collector, SRP likes to show off its collection in hopes of creating more enthusiasts. "Whenever we launch a new project, we invite the press and the public and hold a dedication," Singleton said. "Arizona Falls is a great project for demonstrating renewable energy in action."
The usual marketing tools—direct mail, SRP's Web site, bill stuffers and radio ads—helped to promote the program. The unusual step of researching why customers buy renewable energy made those tools more effective. "We found that renewable energy is an emotional purchase," explained Singleton. "People may not understand all of the technologies involved, but they understand the need to find new clean energy sources besides fossil fuels for the sake of future generations."
That may be why the most effective marketing takes place in person, according to Singleton. "We set up a booth at events where we can talk to customers one-on-one, to answer their questions and explain the benefits of renewable energy," she said. "That's where we build real support for EarthWise Energy."
Future holds more renewable acquisitions
As EarthWise Energy enters its fourth year, the renewable energy collectors at Salt River Project show no sign of changing their acquisitive ways. Solar energy figured prominently in the renewable energy plans announced at SRP's April 26 board meeting. The agency is among public and privately owned utilities joining a national study to explore business models for moving the solar industry forward.
Beginning in June, SRP customers with PV systems will be paid a net-metered buy-back rate for the energy they produce. To encourage more homeowners to install solar panels, SRP plans to develop a new incentive program with input from Phoenix area solar vendors. "We're looking for a business model tailored to the local market," said Singleton. "To do that, we're going to the local solar industry experts for input and ideas."
While the solar-friendly initiatives add PV-generated kilowatts to SRP's portfolio, there is still plenty of room on the shelf for other varieties. Hoping to increase wind opportunities in Arizona, the utility partnered with several other utilities to map the state's wind resources. To ensure a future supply of landfill gas, SRP is building a pipeline from the active Tri-Cities landfill to its generating plant at the old landfill site.
A true connoisseur, Salt River Project understands the value and uniqueness of each renewable resource and will continue to share its appreciation with EarthWise Energy customers.