December 22, 2024
SunZia Project Wins Final Approval, Signs Offtakers
550-mile, 525 kV Transmission Line Will Serve Arizona And California
SunZia Transmission will move New Mexico wind power into Arizona, where it will be delivered to markets in that state and California.
SunZia Transmission will move New Mexico wind power into Arizona, where it will be delivered to markets in that state and California. | Pattern Energy
BLM approves SunZia project, which will send wind power from New Mexico to Arizona for customers there and in California.

Pattern Energy’s SunZia transmission project, a 550-mile line from New Mexico to Arizona, has received route approval from the federal Bureau of Land Management, and construction is expected to start this summer, the company announced last week.

The BLM decision completes the National Environmental Policy Act (NEPA) process and was the last major approval needed for the project. The 525-kV transmission line is expected to be operating in 2026.

The SunZia line will carry energy from Pattern Energy’s 3,500-MW SunZia Wind project in central New Mexico to south-central Arizona. From there, the wind energy will serve customers in Arizona and California. The idea is to supply wind energy to those states during the early evening, when demand is high but solar resources have dropped off.

Pattern Energy announced last week that power purchase agreements have been signed with two California buyers of SunZia wind energy: Shell Energy North America LP and the Regents of the University of California.

A Pattern Energy spokesman said the existing grid would be used to deliver the wind power from Arizona to California.  

“In addition, we will fund some upgrades to the grid to facilitate these deliveries,” the spokesman said.

Contractors Selected

The BLM record of approval was the final federal permit needed for SunZia transmission, a project that has been in the works for 16 years. (See SunZia Transmission Project: Not a ‘Unicorn,’ but not ‘Repeatable.’)

The project has all state and local approvals and is now finalizing landowner permissions to start construction. (See SunZia Transmission OK’d by Ariz. Regulators.)

Pattern Energy acquired the project from SouthWestern Power Group last year. Pattern Energy said SunZia Wind and Transmission combined will be the largest clean energy infrastructure project in U.S. history.

Also this month, Pattern Energy announced it had chosen contractors for engineering, procurement and construction of the SunZia Transmission and Wind projects.

Quanta Services (NYSE:PWR) will work on the transmission line.

In addition, Blattner, which Quanta acquired in 2021, will work on the SunZia Wind project and an associated switchyard. The project will include the installation of more than 900 turbines, 10 substations, operations and maintenance facilities, and more than 100 miles of wind-generation transmission lines.

Hitachi Energy will provide HVDC converter stations and digital control platforms for the transmission project.

Construction of the wind project is expected to begin this year with a 2026 target date to start operations.

UC’s First Wind Contract

For the University of California system, the newly announced SunZia agreement is its first wind energy contract, and its largest renewable energy commitment so far, according to a release. The university signed its first utility-scale contracts for solar eight years ago.

The 85 MW of SunZia wind energy will be used by every UC campus and medical center. It will help the UC Clean Power Program meet the requirements of California’s renewable portfolio standard. The UC Clean Power Program operates under California’s Direct Access Program, in which customers buy electricity from a competitive provider instead of a regulated electric utility.

“The SunZia project expands the systemwide collaboration needed to support each of our campuses as they complete their plans to transition away from fossil fuels,” said David Phillips, associate vice president of capital programs, energy and sustainability.

The university system has more than 50 MW of on-campus green electricity projects. It also buys 60 MW of power from Five Points Solar PV Park and 20 MW from Giffen Solar Park, both in California. An additional 45 MW is expected from a solar facility coming online in 2025.

Onshore WindTransmissionWestern Energy Imbalance Market (WEIM)

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