Molly Ayala
Arizona's electricity comes from a mix of energy sources, including natural gas, nuclear power, coal, solar energy, and hydroelectric power. In 2023, natural gas accounted for 46% of the state's electricity generation, followed by nuclear power at 27%, coal at 10%, solar energy at 10%, hydroelectric power at 5%, and wind at 1%. Arizona has a small industrial sector and a mild climate, which contributes to its low energy consumption. The state also generates more electricity than it consumes, exporting almost one-fifth of its in-state generated electricity to other states. Arizona has been transitioning towards renewable energy sources, with solar power plants challenging hydroelectric power as the state's primary renewable energy source.
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What You'll Learn
Arizona's renewable energy sources
Solar power in Arizona is generated through large-scale solar photovoltaic (PV) facilities, small-scale solar installations such as rooftop solar panels, and utility-scale solar thermal installations. The state ranks fourth in the nation in solar-powered electricity generation and among the top five states in total solar-powered generating capacity, with nearly 9,000 megawatts. Large-scale solar photovoltaic facilities generate 61% of the state's solar power, while small-scale installations provide 34%.
Hydroelectric power in Arizona is produced by plants on the Colorado and Salt Rivers, with the Glen Canyon and Hoover Dams among the largest power plants by capacity in the state. However, in recent years, drought conditions have reduced the contribution of hydroelectric power, with it accounting for only 4% of the state's total in-state net generation in 2024.
Wind energy is another important renewable source for Arizona, with the state exploring projects to bring wind power from Wyoming to population centers in the southwestern state.
Arizona also has deep, high-temperature geothermal resources, particularly in the central and southern parts of the state. While there is no utility-scale geothermal power generation, the state's geothermal heat is used in several direct-use applications, including aquaculture and copper extraction.
Arizona has made efforts to promote renewable energy, such as adopting a renewable energy standard (RES) in 2006, which required regulated electric utilities to source 15% of their electricity from renewable resources by 2025. However, this standard was repealed in February 2024. Arizona also has a diverse energy portfolio that includes natural gas, nuclear power, and energy efficiency programs, with a goal of achieving carbon neutrality by 2050.
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Coal, oil, and natural gas
Arizona's energy consumption in 2015 was dominated by coal, natural gas, and nuclear electric power. In 2023, natural gas (46%) was the state's primary source of electricity, followed by nuclear power (27%), and coal (10%).
Coal
Coal was Arizona's top source of electricity generation until 2016, when natural gas began to surpass it. The state's only operating coal mine is the Kayenta mine on the Navajo and Hopi reservations. It was one of the 30 largest coal mines in the nation. The coal from this mine was sent by conveyor to a closed-loop electric train that took the crushed coal directly to the Navajo Generating Station 80 miles away. The Navajo Generating Station was the state's largest coal-fired power plant and one of five coal-burning plants on Arizona's grid. However, it closed in 2019, and the future of the Kayenta mine is uncertain. The coal that supplies Arizona's other coal-fired power plants is brought into the state by rail, primarily from New Mexico and Wyoming.
Oil
Arizona is not a major oil and gas-producing state. Over the past 100 years, more than 1,100 oil and gas exploration wells have been drilled in Arizona. The largest producing oil field in Arizona is Dineh-bi-Keyah, The People's Field, on the Navajo reservation. Although production is now modest, the field has produced almost 19 million barrels of crude oil since its discovery in the mid-1960s.
Natural Gas
Natural gas has been Arizona's top source of electricity generation since surpassing coal in 2016. In 2023, natural gas provided 46% of the state's electricity. While Arizona does not have major natural gas reserves, natural gas is burned in power plants to produce electricity. Natural gas is also used for home heating by one-third of Arizona residents. Natural gas units help smooth out fluctuations in power that can come from renewable resources, supporting the addition of more renewables to the power system.
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Nuclear power
The Palo Verde Generating Station has had a significant economic impact on Arizona, contributing more than $2 billion annually through taxes, salaries, material and service purchases, and more. It is the largest single commercial taxpayer in the state. In addition to its economic contributions, Palo Verde has also played a role in education and workforce development. In partnership with Estrella Mountain Community College and a local technical education high school district, Palo Verde helped establish West-MEC Southwest, a campus dedicated to training the next generation of utility workers, particularly nuclear plant workers.
The use of nuclear power in Arizona has had environmental benefits as well. Since beginning operations, the Palo Verde plant has offset the emission of over 484 million metric tons of carbon dioxide, equivalent to taking 84 million cars off the road. Additionally, the plant's use of treated sewage effluent for cooling water has led to innovative wastewater treatment and storage practices. The plant treats wastewater at its water reclamation facility and stores it in an 80-acre reservoir for use in its nine cooling towers.
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Arizona's electricity exports
The Western Area Power Administration is responsible for distributing electricity in Arizona, and the state has adopted a renewable energy standard (RES) that encourages the development of renewable energy sources. The state has a capacity of almost 300 megawatts from solar power, with four large solar farms scheduled to come online in 2025, adding a total capacity of 960 megawatts. Hydroelectric power, provided mainly by the Glen Canyon and Hoover Dams, typically accounts for less than one-tenth of Arizona's total in-state net generation. However, in 2024, it supplied only 4%, the lowest in more than two decades, due to the state's prolonged drought.
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$10.47
Geothermal energy
Arizona has some deep, high-temperature geothermal resources, particularly in the central and southern parts of the state. However, Arizona does not have any utility-scale geothermal power generation. The state's geothermal heat is used in several direct-use applications, such as in an active aquaculture industry that raises shrimp and fish, and for copper extraction. Arizona also has many hot springs that attract visitors to resorts and spas in the state.
The two highest-temperature springs in the state are Clifton and Gillard, both in the Clifton-Morenci area of southeastern Arizona. The water temperature at these springs ranges from 158-180 degrees Fahrenheit. Even though temperatures may exceed 284 degrees Fahrenheit at depth, these two sites are only suitable for low-grade steam. The only types of geothermal energy to be commercially developed are those called "hydrothermal", which include steam, as developed at The Geysers (north of San Francisco), and liquid, as developed in southeastern California.
Although some high-temperature geothermal resources exist southeast of Phoenix near the now-retired Williams Air Force Base, they have never been deemed economically feasible. Resources below 150 degrees Celsius have wide non-electric applicability, being used in greenhouses, hot baths, onion dehydration, laundries, and even hotel space heating. The capital of Iceland is almost entirely heated with geothermal water. Several heating districts exist in the US, although none are as large as those in Iceland.
In Arizona, the opportunity to use geothermal water is limited, in part by population distribution, yet at least three locations are well known: Buckhorn Baths in Apache Junction, Castle Hot Springs in the Bradshaw Mountains, and Childs on the Verde River. Geothermal heating and cooling systems are available in Tucson and Phoenix, Arizona, and are extremely energy-efficient, lasting twice as long as conventional systems and saving up to $1,500 annually.
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Frequently asked questions
In 2023, Arizona's electricity was generated from natural gas (46%), nuclear power (27%), coal (10%), solar energy (10%), hydroelectric power (5%), and wind (1%).
Arizona's coal for electricity generation comes from the Black Mesa coal field in the northeast and the Pinedale coal field in south-central Arizona. The state's only operating coal mine is in the Black Mesa field, and it supplies the coal-fired Navajo Generating Station.
Arizona has a variety of renewable energy sources, including solar, wind, geothermal, and biofuel. In 2024, about 20% of the state's total electricity generation came from renewable resources. The state has also invested in renewable energy projects, such as the SunZia Transmission Project, to increase its renewable energy capacity.
Arizona's per capita energy consumption is lower than almost four-fifths of the states. This is partly due to the state's small industrial sector and mild climate.
One challenge is the planned closure of the Navajo Generating Station in 2019, which may impact the operations of the associated coal mine. However, Arizona has the potential to develop more renewable energy sources, such as solar, wind, and geothermal, and is working to improve its transmission capacity with neighbouring states.
