Arizona Gov. Katie Hobbs was in the Florence area on Wednesday for the groundbreaking of the Box Canyon Solar Project.

The 300-megawatt project, located near Florence, represents the largest renewable energy procurement in the Southwest Public Power Agency’s history, “and a major step in Arizona’s clean energy transformation,” according to a press release.

The project is the first in the 2-gigawatt Arizona portfolio owned by BrightNight, a renewable power producer, and its joint-venture partner, Cordelio Power, to begin construction.

BrightNight CEO Martin Hermann, SPPA Chairman Ken Robbins and Pinal County leaders joined Hobbs at the groundbreaking.

"While our state continues to experience historic economic growth, we must ensure this growth is sustainable, and there is no better place to do that than in our rural communities,” Hobbs stated in the press release. “This monumental project will not only generate clean energy, it will provide consistent revenue for the state and good paying jobs for local residents. My administration is committed to ensuring Arizona's potential for solar energy is fully realized so that we can make our state the best place to live, work, and raise a family."

The groundbreaking marks a major milestone since SPPA selected the Box Canyon project in a competitive process beginning in December 2020. The Box Canyon Solar Project is expected to become operational in the first half of 2025.

“We are delighted to partner with SPPA, one of the most forward-thinking utilities in America, to help them meet their power needs and deliver on their sustainability goals,” Hermann stated in the release. “The Box Canyon Solar Project is a model of utility-scale renewable power. At over 900,000 MWh of projected annual production, our project will provide reliable, clean energy for over 40 years, generating local revenue, strengthening domestic energy security, and creating valuable American jobs.”

The project will produce enough electricity to power 77,000 Arizona homes and businesses annually “with clean, reliable, and affordable energy, offsetting more than 600 metric tons of CO² emissions every hour,” the release stated.

“SPPA is proud to supply its members with safe, clean, reliable, and affordable electricity from an industry-leading renewable power producer. BrightNight was able to understand our long-term goals and propose a solution to meet the needs of our members and their customers, while remaining cost-effective,” Robbins stated in the release.

The project will provide economic benefits at the local level. According to an economic impact study by Elliott Pollack and Associates, the project will have a $47 million economic impact in Pinal County during the construction period and create 300 jobs, the release stated.

During operation, the Box Canyon Solar Project will generate an estimated $134 million in additional local economic activity in the form of local property taxes, wages and more, bringing the total county-level economic contribution from construction and operations to over $180 million, the release added.  

Hermann also announced that a portion of the project’s operating proceeds would be used to send 50 students through Central Arizona College’s electrician program over the next five years.

BrightNight worked with the Arizona State Land Department to site the project on State Trust Land. Under the arrangement, more than $65 million in lease payments will be made over the life of the project, which are allocated to the Arizona land trust, the release added.

The trust’s beneficiaries include K-12 education, university education, state hospitals, the department of corrections and more across the state.