Sustainable Portfolio

SRP’s Sustainable Portfolio combines renewable energy resources, hydro generation, and energy efficiency programs to benefit the environment. The acquisition of resources and implementation of these programs are guided by the Sustainable Portfolio Principles.

SRP’s Board of Directors, which has responsibility for setting renewable and energy efficiency standards, set a goal for the company to meet 20% of its retail energy requirements through sustainable resources by 2020. One of the primary motivations for establishing sustainable energy goals is to reduce emissions intensity. Looking beyond 2020, SRP's Board of Director approved the 2035 Sustainability Goals in October 2017, which continues the effort to move towards a sustainable future.

Progress report

As of the close of SRP's 2018 fiscal year (May 1, 2017 through April 30, 2018), we are currently on schedule to meet the goal by delivering 17.25% of retail requirements through sustainable resources, including: renewable energy, hydroelectric generation, energy efficiency programs, and banked credits.

Sustainable Portfolio Fiscal Year 2018 results

Energy Efficiency Megawatt-hours
Commercial demand side management 1,411,370
Residential demand side management 1,204,759
M-Power 281,137
SRP facility savings 2,469
Total Energy Efficiency 2,899,735
Renewable energy
Biomass 80,017
Hydropower 679,915
Geothermal 300,665
Solar 467,324
Wind 230,393
Renewable energy credits 68,148
Total renewable energy 1,823,463
Banked credits 331,877
Total sustainable portfolio - MWh 5,055,075
Total sustainable portfolio – % of retail requirements 17.25%

Performance of renewable resources

Over the last 10 years, SRP’s renewable energy resources have made up between 4% and 7% of its retail energy requirements. SRP’s renewable energy performance also compares favorably when defined against the Renewable Energy Standard and Tariff (REST) – a policy for utilities under jurisdiction of the Arizona Corporation Commission (ACC). While SRP is not governed by the ACC with respect to our renewable portfolio, we exceed the REST requirements when hydroelectric generation is included. SRP includes energy from run-of-river hydroelectric generation as a sustainable energy resource because of our role as one of the largest suppliers of water in the Phoenix metropolitan area.

A line chart showing renewables as a percentage of SRP's retail sales from 2005 to 2016. The chart shows that SRP's renewables with hydroelectricity made up about 4 percent of retail sales in 2005, increasing to about 6.5 percent by 2016. When compared against REST requirements, it rose from about 1.2 percent in 2005 to about 3.99 percent in 2016.

Electricity generated from renewable resources helps drive down SRP’s generation emissions intensity. SRP takes a balanced and measured approach to adding a diverse mix of new renewable generation to our portfolio to ensure that sustainable energy targets are realized while preserving reliable power and keeping costs down.

Performance of energy efficiency

Over the past several years, SRP has offered a variety of energy efficiency programs to help our customers manage their energy use and costs. Our goal is to offer options for customers while aiding in the management of SRP’s resources. Energy efficiency plays a key role in accomplishing this mission by cost-effectively meeting SRP’s current goals while contributing to long-term emission intensity reductions. Currently, energy efficiency makes up 8.90%, or over half of the annual Sustainable Portfolio target.

When comparing SRP’s portfolio performance under the ACC’s Energy Efficiency Resource Standard (EERS), SRP exceeds the Arizona target.

A line chart showing energy efficiency as a percentage of retail sales at SRP. SRP's energy efficiency as defined by EERS, has risen from 2 percent in 2011 to nearly 11 percent in 2016, slightly ahead, year-over-year, of the Energy Efficiency Resource Standard.