USDA awards $55.2 million grant to build battery storage facility in Sahuarita

SAHUARITA, Ariz. (KGUN) — In southern Arizona, peak electricity usage has reached increased by more than five percent since 2019, according to Tucson Electric Power (TEP).

In response to growing demand, the United States Department of Agriculture (USDA) has granted a coalition of energy cooperatives $55 million grant to support the development of battery energy storage systems in rural areas of southern Arizona.

On July 2, the United States Department of Agriculture held a ribbon-cutting ceremony to celebrate the grant, which comes from Powering Affordable, Clean Energy (PACE). The program was created after the passage of the Inflation Reduction Act of 2022, a bill aimed at financing clean energy projects.

Under the PACE program, the Rural Development Service (RUS) forgives up to 60% of loans granted for renewable energy projects, including energy storage.

The grant will specifically support three battery storage facilities in Arizona, including one at TRICO’s Sahuarita substation, which was built last year.

TRICO and its members are one of the energy cooperatives eligible for the grant. The organization is part of Arizona G&T Cooperatives, which received the USDA grant through its sister organization, Sierra Southwest Cooperative Services.

The group works with Arizona Electric Power Cooperative (AEPCO) and its distribution cooperatives, such as TRICO.

The remaining two storage facilities covered by the subsidy are located in Cochin AND Fort Mojavealso in rural Arizona.

The total capacity of the battery storage is 35 megawatts and can provide energy for four hours.

The Sahuarita power plant, already in operation, can power approximately 3,000 households.

Brian Heithoff, CEO of TRICO Electric Cooperative, emphasized the importance of expanding infrastructure to meet growing energy demands.

“Energy consumption in America, and particularly here in Arizona, is growing,” Heithoff said. “We need to build more assets, more infrastructure, to be able to serve our members.”

These battery storage systems are designed to harness solar energy, store energy during the day and release it at night. This process not only improves reliability and resilience, but also offers cost savings for cooperative members.

“It will allow us to provide more reliable energy,” Heithoff said. “It will allow us to be more resilient, and it will also save our members money.”

Heithoff says 12% of TRICO members have solar and battery storage facilities, making the cooperative one of the five largest electric cooperatives in the country for renewable energy use.

The impact of these projects goes beyond energy sustainability.

AEPCO has partnered with the International Brotherhood of Electrical Workers (IEBW) on the New Era program. It provides an apprenticeship program to train workers for the growing clean energy sector.

Joshua Despain, Business Manager of IEBW Local Union 570, highlighted the benefits of the program. “We take apprentices into our program and when they leave our program, they are journeymen, electricians,” he said. “We qualify them after our four-year program and at that point they are part of the community and they are contributing to the economy.”