The company said that the Solana generating station will produce enough energy to serve 70,000 Arizona Public Service (APS) customers when operating at full capacity. The plant will be built by Abengoa Solar and is scheduled to provide renewable energy beginning in 2011.

The Solana facility will not emit greenhouse gases and will reportedly provide APS with more solar electricity per customer than any utility in the US. It will employ technology that can both produce and store energy during the day, and then provide that energy for use by APS customers across periods of peak demand.

APS will purchase 100% of the plant’s energy output, pending approval from the Arizona Corporation Commission. The value of the produced energy will be about $4 billion over 30 years.

Don Brandt, APS president, said: APS is committed to making Arizona the solar capital of the world and bringing affordable renewable energy to all our customers. The Arizona Corporation Commission has challenged Arizona utilities to be leaders in renewable energy, and we are responding aggressively.