The U.S. Department of Energy is giving a conditional loan of over $1.8 billion to APS. The utility company says this guarantee would finance various projects and energy initiatives.
The construction of the Agave Battery Energy Storage System will be the first investment backed by the loan.
Other projects expected to be supported include additional facilities for the storage system and transmission infrastructure.
The department says the initiatives will help meet APS’ goals of providing clean energy and carbon-free electricity by 2050. A finalized transaction means the APS can also “reduce long-term operational costs, and lower electricity rates.”
The project is linked to President Joe Biden’s Investing America agenda.