An Arizona electric cooperative won a $485 million USDA grant

Arizona Electric Power Cooperative (AEPCO) has been selected to receive $485 million in funding through the U.S. Department of Agriculture’s (USDA) New Empowering Rural America (ERA) program.

“We are investing historic resources in innovative solutions to help Arizona communities reduce wildfire risk and adapt to drought,” said Secretary of Agriculture Tom Vilsack. “At the same time, we look to the future by investing in clean energy infrastructure, creating new jobs and building prosperity in rural communities.”

The new ERA grant opportunity will help AEPCO retire its last remaining coal assets by the end of 2027 and make significant investments in new utility-scale renewable energy projects, including 730 MW of solar and 2,910 MW of battery storage hours for 40 member cooperatives and public utilities in the rural southwest.

ERA is also expected to diversify AEPCO’s energy resources and reduce its dependence on older fossil fuel resources, reducing CO2 emissions by more than 1 million tons per year, or more than 70%, by 2031.

AEPCO has developed an accompanying Community Benefit Plan (CBP) to engage with its union partners, local colleges and other stakeholders and develop new renewable energy apprenticeship programs.

Jordy Fuentes, executive director of the Arizona Power Authority, noted that the benefits of AEPCO’s new ERA projects will not only benefit Arizona’s electric cooperative communities, but will also be spread throughout the rural Southwest.