SAN FRANCISCO (Dow Jones)–UniSource Energy Corp. (UNS) unit Tuscon Electric Power said Wednesday it has signed contracts with two developers for a total of 30 megawatts of solar power.
One deal, with Spanish solar developer Fotowatio, entails construction of a 25-megawatt solar farm using ground-mounted solar panels that track the sun's movements.
The other deal is with Bell Independent Power Corp., which plans to build a 5-megawatt solar-thermal power plant using rows of parabolic troughs and a heat-transfer and storage system to create steam to drive a turbine and generate electricity. The facility will include a thermal-storage system that will store heat from the sun for several hours, allowing the plant to generate power into the early evening, Tuscon Electric Power said.
Both solar plants are expected to be completed by January 2012 and together could power about 6,100 homes, the utility said.
Tuscon Electric said it wants to buy more solar power, and that it issued a request for proposals Friday for new solar resources.
Arizona regulations require the state's utilities to use renewable sources for 15% of the power they sell by 2025.
Earlier this week, Tuscon Electric said it applied for $25 million in federal stimulus funds to support a 1.6-megawatt solar-panel generator and energy-storage system. The project would include lithium batteries and a compressed-air energy storage system that would store solar power for later use.
Shares of UniSource closed Wednesday 1.6% higher at $30.60.
