Salt River Project (SRP) announced a substantial agreement with NextEra Energy Resources to construct 3,000 megawatts of solar generation capacity by 2034, representing one of the utility's largest renewable procurement agreements to date. The deal is designed to support SRP's long-term system expansion while advancing its decarbonization and reliability objectives as electricity demand increases across Arizona.
Under the agreement terms, approximately 500 MW of solar capacity will be built annually from 2029 through 2034. At peak output, the projects are expected to generate enough electricity to power roughly 595,000 Arizona homes. The utility stated that the new solar capacity forms part of a broader strategy to more than double its generating capacity by 2035, combining solar with battery energy storage and natural gas generation to maintain grid reliability.
SRP emphasized that the expansion balances three core objectives: increasing renewable energy penetration, maintaining affordability for customers, and ensuring system reliability during peak demand periods. The utility has been steadily expanding its clean energy portfolio in recent years through solar and storage deployments across Arizona.
NextEra Energy Resources, one of the largest renewable energy developers in the United States, will be responsible for developing the new solar assets. The company already operates several existing renewable projects serving SRP customers in Arizona, and the new agreement extends their established partnership.
The agreement reflects broader patterns in the U.S. utility sector, where large-scale solar and storage procurement is accelerating due to rapid growth in electricity demand, corporate and utility decarbonization targets, and declining renewable technology costs. SRP indicated that the new capacity will help meet rising demand across the Phoenix metropolitan region while supporting its Integrated System Plan for 2035.
