290-MW CSP Project for APS Terminated

Arizona utility, APS has received notice from Starwood Energy Group Global LLC that it is terminating the long-term purchase power agreement the two companies signed in May 2009.

This ends plans for Starwood Solar I, the 290-megawatt (MW) concentrating solar plant (CSP), which was to be located in the Harquahala Valley, 75 miles west of Phoenix.

“APS remains committed to solar energy and we intend to aggressively respond to this development as we stay on track with our plans to increase the amount of renewable energy we provide to customers,” said Don Robinson, president of APS.

Starwood Solar I was the second large-scale solar project announced by APS in the last 19 months. The first, Solana, continues to move forward and financing for the 280-MW CSP plant is likely to be announced in the first half of 2010.

Lockheed Martin, the project developer, cited the size and the final risk profile of the engineering, procurement and construction contract, among other factors as the reasons it decided not to go forward.

APS expects to announce before the end of the year the results of two current solicitations for renewable energy, one for small-scale generation projects and one for distributed generation, that will replace the lost Starwood capacity.

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