Arizona is experiencing unprecedented energy growth, and the Arizona Corporation Commission (ACC) is rising to meet the challenge with an ambitious "all of the above" energy strategy. In just the first eight months of 2025, the Commission has approved nearly 5,000 MW of new electricity generation capacity, demonstrating the state's commitment to energy reliability, affordability, and diversification.
Record-Breaking Energy Expansion
The numbers speak volumes about Arizona's energy ambitions. From January through August 2025, the Commission has approved several applications, and energy-related projects, which will lead to the construction of about 42 miles of new transmission lines, and the increase of the state's electricity net generation and net summer capacity by about 4,750 MW. This massive expansion includes:
4,550 MW of new solar generation and battery storage facilities
200 MW of natural gas expansion
42 miles of new transmission infrastructure
This infrastructure investment represents more than just numbers on a spreadsheet—it's a foundation for Arizona's economic future and energy security.
The Power of Energy Diversity
What sets Arizona apart is its commitment to energy diversity rather than putting all eggs in one basket. The latest data from the U.S. Energy Information Administration's Electric Power Monthly report reveals the current diversity of Arizona's energy portfolio. The data indicates that 43% of the state's net generation in June 2025 came from natural gas, followed by nuclear at 26%, utility-scale solar at 17%, coal at 6%, hydroelectric at 5%, and wind at 3%.
This balanced approach ensures grid reliability while positioning Arizona as a clean energy leader. Notably, Arizona solar facilities produced more than twice that amount in the month of June compared to the national average of 8% for utility-scale solar generation.
Meeting Growing Demand Head-On
Arizona's rapid population and economic growth is driving unprecedented energy demand, particularly from data centers and expanding residential communities. As Chair Kevin Thompson noted, "Ushering in the next era of generation and transmission in Arizona is a challenge that is going to require cooperation from all levels of government".
The Commission's proactive approach addresses this challenge by investing in infrastructure before shortages occur. Vice Chairman Nick Myers emphasized that "Every megawatt and mile of transmission approved by the Commission represent more than growth and economic development — they represent a more reliable and resilient grid and a commitment to long-term energy security for families and businesses across the state".
Reliability When It Matters Most
Energy reliability isn't just about keeping the lights on during normal times—it's about ensuring power availability during Arizona's extreme summer heat when air conditioning becomes a matter of life and death. Commissioner Márquez Peterson highlighted this critical aspect: "The Commission continues to prioritize grid reliability in its actions to ensure that all ratepayers and especially vulnerable Arizonans have electricity especially on the hottest summer days".
This focus on reliability during peak demand periods demonstrates how Arizona's diverse energy portfolio serves both economic and public safety objectives.
Looking Ahead: Building Arizona's Energy Future
The 2025 energy expansion represents just the beginning of Arizona's energy transformation. With new nuclear technologies on the horizon, continued solar and battery storage development, and strategic natural gas investments, the state is building a resilient energy infrastructure capable of supporting continued economic growth.
The Commission's "all of the above" strategy ensures Arizona won't be dependent on any single energy source or technology. Instead, the state is creating a robust, diversified energy portfolio that can adapt to changing market conditions, weather patterns, and technological advances.
As Arizona continues to attract businesses and residents seeking economic opportunity and quality of life, the foundation being laid today through these energy investments will prove crucial to sustaining that growth for decades to come. The nearly 5,000 MW approved in 2025 isn't just about meeting today's needs—it's about powering Arizona's future.