With the surge in energy demand from data centers, residents are increasingly worried that these facilities might be inflating their electricity bills. A new gas power plant could potentially address these concerns by exploring innovative funding models.
Arizona Public Service (APS) has announced the Desert Sun Power Plant near Gila Bend, projected to generate 2,000 megawatts of power in two phases. The first phase’s expenses will be distributed among all users. However, the second phase will adopt a subscription model targeting large industrial consumers, such as data centers.
Jacob Tetlow, Executive Vice President at APS, explained the strategy: “They actually front some of the financials to help build it. They’re committing to taking that energy for the long term. And then they get rights to that energy.”
Before implementation, the proposal must receive approval from the state agency overseeing utilities. While Tetlow refrained from disclosing the plant’s construction costs and subscription pricing, the venture’s success could set a precedent for future energy projects.
The power plant will be supplied with gas via the Transwestern pipeline, which was announced in August and originates from Texas.
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