Arizona Energy Summary
This page provides a summary of energy in Arizona. Here you will find an overview of energy consumption, listing of energy efficiency goals under the Energy Policy Act of 2005 (EPAct), a summary of the status of renewable energy and energy efficiency policies, and a list of political leaders and state agency administrators who shape energy policy for Arizona. You can link to the following subheadings on this page:
- Executive summary
- Economic and demographic facts that affect energy consumption
- Status of renewable energy and energy efficiency policies
Executive Summary
Total Energy Consumption per Capita 1980 - 2005 and EPAct Goal for Arizona
(million Btu)
Section 123 of EPAct requires states to set an energy conservation goal that is 25% below 1990 consumption. DOE is currently considering a per capita goal among other options.
Source: U.S. Department of Energy (DOE) Energy Information Administration State Energy Price, Expenditure, and Consumption Estimates (SEDS) database. Note, that 2005 is the latest year for which state-by-state data is available.
Arizona is a coal-producing state, but has few reserves of other fossil fuels.
Read a more complete energy summary for Arizona, including consumption and production statistics for fossil fuels on the DOE Energy Information Administration (EIA) Arizona Energy Profile.
| Total energy consumption per capita | 249 (million Btu) |
State rank | 47 |
|---|---|---|---|
| EPAct per capita goal for 2012 | 194.7 (million Btu) |
State rank | 43 |
| Average annual increase in total energy consumption | -0.4% | State rank | 43 |
Electricity
Fuel Sources for Electric Power Generation
(trillion Btu)
Source: EIA SEDS Database.
| Annual growth of electricity consumption | 3.7% | State rank | 2 |
|---|---|---|---|
| Electricity production from nonhydro renewable energy | 51 (million kWh) |
State rank | 46 |
Arizona has a traditional regulated market for electric power. Electricity consumption is increasing at 4.1% per year, which almost twice the national average, and is increasing more rapidly than the population.
Arizona power plants export large amounts of electricity to neighboring states, especially California. The Southwest Electric Region (for reliability) has a surplus of generating capacity, with reserve margins about 24% above the forecast for peak demand. However, transmission capacity to the west into California is often fully committed in the summer. A severe heat wave in July 2006 caused record-setting electricity consumption throughout the Southwest. Arizona producers were able to meet demand and still export to California, but wholesale prices reached a maximum of $0.35 per kWh on July 26. Read more Arizona electric power and renewable energy statistics published by the DOE Office of Energy Efficiency and Renewable Energy.
Transportation
Motor Gasoline Consumption per Capita 1980 - 2005
(gallons)
Source: EIA SEDS Database.
Transportation accounts for 36% of all energy consumption in Arizona, which makes it the largest energy-consuming sector of the state economy. You can find data about the consumption of alternative fuels in Arizona from the DOE Alternative Fuels Data Center.
| Motor gasoline consumption per capita | 476 (gallons) |
State rank | 31 |
|---|---|---|---|
| Ethanol consumption | 14,195,776 (gallons) |
State rank | 17 |
| Number of alternative fuel stations | 130 | State rank | 5 |
| Population | 5,952,000 | State rank | 17 |
|---|---|---|---|
| Percent urban population | 87.6% | State rank | 11 |
| Annual population growth rate | 3.1% | State rank | 2 |
| Per capita personal income | $30,019 | State rank | 39 |
| Gross state product | $232,463 (million) |
State rank | 19 |
Economic and Demographic Facts that Affect Energy Consumption
The following statistics for Arizona put energy consumption into perspective in the context of the state economy and the size and growth of the population.
Status of Renewable Energy and Energy Efficiency Policies
Arizona has the following state-level policies and incentives in place that support the development of renewable energy and energy efficiency technologies. The links give detailed explanations of the policies and incentives published online by the Database of State Incentives for Renewable Energy and Energy Efficiency:
Building energy codes for energy efficiency
Arizona is a home-rule state, so its residential building codes are under local jurisdiction. The state recommends that local authorities use the 2000 International Energy Conservation Code for new residential construction.
Corporate tax credits for renewable energy
The state offers a tax credit that may be applied against corporate taxes equal to 10% of the installed cost of qualified solar energy systems.
Personal tax credits for renewable energy
Arizona's Solar Energy Credit provides an individual taxpayer with a credit for installing a solar or wind energy device at home. The credit covers up to 25% of the cost of a solar or wind energy system, up to $1,000.
Renewable portfolio standard for renewable energy
Investor-owned utilities are required to obtain 15% of their electricity from renewable energy resources in 2025, with 30% of this amount to derive from distributed energy technologies.
State standards for public buildings for energy efficiency
The Arizona Board of Regents, Department of Administration, and the Department of Transportation must reduce energy use in their buildings (using 2002 as the baseline year) by 10% in 2008 and 15% in 2011.
