Last Updated: July 17, 2025

Overview

Arizona is known for its stunning landscapes and natural wonders from the Grand Canyon in the north to the Saguaro deserts in the south.¹ Known as the Grand Canyon State, it is the sixth-largest state in the nation.² Arizona has few fossil fuel reserves, but it does have abundant renewable energy resources.^3,4,5,6 Although higher elevations receive greater amounts of precipitation, including significant snowfalls, most of Arizona is semiarid or arid, and plentiful sunshine gives the entire state some of the nation's greatest solar energy resources.^7,8,9 Elevations in Arizona vary from peaks more than 12,000 feet high in the north to nearly sea level in the deserts in the southwest. Some of the highest elevations and greatest wind potential in the state are on the Colorado Plateau just north of the 200-mile-long Mogollon Rim, which cuts diagonally across central Arizona from northwest to southeast and marks the southern edge of the Plateau.^10,11,12 Even though it is arid, the state has biomass resources, as more than one-fourth of Arizona is forested.^13,14 Arizona also has major hydroelectric facilities, including Hoover Dam and Glen Canyon Dam, the two highest concrete-arch dams in the United States.¹⁵

Arizona's minerals drew Spanish explorers seeking gold, silver, and copper as early as the late 1500s.^16,17 About two-fifths of the state's surface acreage and nearly half of Arizona's minerals acreage is administered by the federal government.¹⁸ Arizona still produces more copper than any other state, accounting for about 70% of the nation's output in 2023.¹⁹ Arizona is also the site of major uranium reserves, including the highest-grade uranium in the nation.²⁰ After years of no uranium mining in the state, the Pinyon Plain Mine—formerly known as Canyon Mine— resumed operations in January 2024 due to the rise in uranium prices and U.S. ban of uranium imports from Russia.^21,22,23 Mining has long been a significant contributor to the state's wealth.²⁴ However, Arizona's economy has diversified. Finance and insurance; real estate; professional and business services; government; and health care services are today among the largest contributors to the state's GDP.²⁵ Other key industries in the state include computer and electronic products manufacturing; aerospace and defense; and biosciences.²⁶

Overall, Arizona's total per capita energy consumption is less than in almost three-fourths of the states.²⁷ In 2023, the transportation sector accounted for 36% of Arizona's total energy consumption, the residential sector used about 27%, the commercial sector accounted for 23%, and the state's industrial sector consumed 14%.²⁸ The majority of Arizona's residents live in a few large urban areas, leaving most of the state lightly populated.²⁹ Mild summers in the north and mild winters in the south make Arizona a popular vacation and retirement destination.^30,31 Between 2020 and 2024, Arizona's population growth rate ranked among the top 10 states.³² The pleasant weather also draws many seasonal residents, and about 1 in 20 Arizona homes are occupied only part of the year.^33,34,35

Electricity

Natural gas is the primary fuel used for electricity generation in Arizona. Natural gas-fired power plants provided 45% of Arizona's total in-state electricity net generation in 2024.³⁶ Although 5 of the state's 10 largest power plants by capacity and 6 of the 10 largest by generation are natural gas-fired, the Palo Verde Nuclear Generating Station is Arizona's largest power plant and the nation's second-largest nuclear power plant after the Vogtle plant in Georgia.^37,38 In 2024, Palo Verde's three operating reactors supplied about 27% of the state's net generation, and it accounted for 4% of the nation's nuclear generation. Until 2015, coal fueled about as much or more of the state's electricity generation as nuclear power.^39,40 Some coal-fired power plants have switched to natural gas due to lower natural gas prices. The Navajo Generating Station, which was the largest coal-fired facility in the state and Arizona's second-largest power plant, permanently closed in late 2019.^41,42,43,44 In 2024, coal fueled 8% of the state's total net generation, down from 38% a decade earlier. Renewable resources, mostly solar and hydroelectric power, supplied almost all the rest of Arizona's in-state electricity generation in 2024.⁴⁵

Some of Arizona's in-state generating capacity was developed to power the crucial pumping systems that bring water for drinking and irrigation from the Colorado River in the north to the drier central and southern parts of Arizona, where most of the state's population lives.^46,47 However, Arizona power plants typically generate more electricity than the state consumes, and almost one-fifth of the electricity generated in-state is sent over the regional grid to consumers outside of Arizona.⁴⁸ Because interstate transmission lines have become congested during peak demand periods, Arizona continues to work with other states and stakeholders to improve transmission capacity.⁴⁹ Projects in development include the SunZia Transmission Project that will transmit electricity from mostly renewable resources in Arizona and New Mexico to consumers across the southwest.^50,51 The TransWest Express Transmission Project will bring wind power from Wyoming to population centers in the southwestern states, including Arizona, and will send solar power from the southwest to the Rocky Mountain states.⁵² The Ten West Link Transmission Project, which connected areas of southeastern California to southwestern Arizona, facilitating renewable energy development along the route, came online in April 2024.⁵³ Arizona also has nearly 3,900 megawatts of battery energy storage systems (BESS), with an additional 3,807 megawatts planned to come online by 2026.⁵⁴ BESS are an option for adding power in remote rural communities and storing energy generated by renewable sources.⁵⁵ Batteries deployed in BESS currently use lithium and Arizona has some smaller lithium deposits.⁵⁶ An open-pit lithium mining project, Big Sandy, is in development in northern Arizona.⁵⁷

Arizona consumes more electricity than two-thirds of the states, but its total per capita electricity use is less than in three-fifths of the states. Arizona's residential sector, where about 3 in 5 households rely on electricity for home heating and more than 9 in 10 homes use air conditioning, consumes more electricity than the residential sectors in about three-fourths of the states.^58,59,60 In 2024, the residential sector accounted for about 45% of Arizona's electricity sales, followed by the commercial sector with 39% and the industrial sector with 16%. Arizona's transportation sector used a small amount of electricity for public electric rail.⁶¹ As of May 2025, Arizona had 1,378 public electric vehicle charging locations.⁶²

Renewable energy

In 2024, electricity generated from renewable sources provided about

20% of Arizona's total net generation. Solar power from utility-scale (1-megawatt or larger) photovoltaic, utility-scale solar thermal, and small-scale (less than 1 megawatt) customer-sited installations combined accounted for two-thirds of the state's renewable generation. Hydroelectric power and wind energy supplied almost all the rest. Conventional hydroelectric power long dominated Arizona's renewable generation, but the contribution from solar-powered installations surpassed hydroelectric generation for the first time in 2017. In 2024, solar energy accounted for 13% of the state's total electricity net generation from all energy sources.⁶³

Arizona ranks among the top five states in the nation in total solar-powered generating capacity from both utility- and small-scale installations, with nearly 9,000 megawatts.⁶⁴ In 2024, it ranked fourth in solar-powered net generation, after California, Texas, and Florida. Large-scale solar photovoltaic (PV) facilities generate 61% of the state's solar power and small-scale solar installations, such as rooftop solar panels, provide 34%. The remaining 5% comes from utility-scale solar thermal installations.⁶⁵ Arizona is one of four states with utility-scale electricity generation from solar thermal technologies, which concentrate sunlight to heat fluids used to spin the turbines that generate electricity.^66,67 The Solana Generating Station in Maricopa County is Arizona's only solar thermal power plant. It has a capacity of almost 300 megawatts. Four large solar farms are scheduled to come online in Arizona in 2025, with a total capacity of 960 megawatts.⁶⁸

Hydroelectric power typically accounts for less than one-tenth of Arizona's total in-state net generation. In 2024, it supplied 4%, the lowest in more than two decades, in part because of the state's prolonged (since 1994) drought.^69,70,71 Glen Canyon Dam and Hoover Dam, located on the Colorado River in northern Arizona, are among the 10 largest power plants by capacity in the state.^72,73,74 They provide most of Arizona's in-state hydroelectric generation.⁷⁵ Arizona is also 1 of 18 states with pumped storage hydroelectric generation.⁷⁶ During periods of low power demand, which are usually at night, less costly electricity is used to pump water from a lower reservoir to an upper reservoir. Then, during periods when power demand and electricity prices are higher, usually during the day, the water is released from the upper reservoir and flows down through generating turbines on its way to the lower reservoir, producing electricity. Although the pumped storage plant uses more power than it generates, it supplies power in periods of peak demand when electricity prices are higher.⁷⁷ The state's three pumped storage plants have a combined capacity of almost 220 megawatts.^78,79

In 2024, Arizona's nine utility-scale wind farms provided 2% of the state's total electricity generation.^80,81 The state is among the top five states with the best wind energy potential.⁸² Two new wind projects located in Coconino County in north-central Arizona came online in 2024, with a total generating capacity of almost 400 megawatts. One of these projects is phase two of the Chevelon Butte project, which has a total generating capacity of 454 megawatts and is now Arizona's largest wind farm.⁸³

Biomass fueled less than 0.2% of Arizona's power in 2024, almost all of it from the state's largest biomass-fueled power plant.^84,85 Arizona biomass resources also provide feedstock for the state's one wood pellet manufacturing plant, which has an annual production capacity of about 80,000 tons.^86,87 Wood pellets are used for power generation and space heating. About 1 in 60 Arizona households heat with wood.⁸⁸

Arizona has some deep, high-temperature geothermal resources, particularly in the central and southern part of the state, but Arizona does not have any utility-scale geothermal power generation.^89,90 However, the state's geothermal heat is used in several direct-use applications, including in an active aquaculture industry that raises shrimp and fish and for copper extraction. Arizona also has many hot springs that attract visitors to several resorts and spas in the state.^91,92

Arizona adopted a renewable energy standard (RES) in 2006 that required regulated electric utilities to source 15% of the electricity they sell from renewable resources by 2025. A portion of each year's required renewable energy target had to come from non-utility, customer-sited generation. In February 2024, Arizona regulators voted to repeal the RES.^93,94 In 2024, about 20% of the state's total electricity generation came from renewable resources.⁹⁵

Petroleum

Arizona has no significant proved crude oil reserves, and the state's few oil wells produced only about 6,000 barrels of crude oil in 2024.^96,97 The only significant oil field in the state, the Dineh-bi-Keyah field, is on the Navajo reservation in the northeastern corner of Arizona.⁹⁸ Helium, an important industrial gas, is produced from formations below the crude oil zones in that field in the Four Corners area and in the Holbrook Basin further south.^99,100 Some areas in the state may have additional crude oil potential, but exploratory drilling has not yielded large finds, and much of Arizona remains unexplored.¹⁰¹

Arizona does not have any crude oil refineries.¹⁰² The state receives motor gasoline and other petroleum products by pipeline from Southern California and from Texas.¹⁰³ In 2023, the transportation sector accounted for 86% of the petroleum consumed in Arizona.¹⁰⁴ To meet federal air quality standards, the Tucson area requires oxygenated motor gasoline in the winter. More stringent state regulations require the use of an oxygenated blend of motor gasoline called Arizona Clean Burning Gasoline in Maricopa County, including the city of Phoenix.^105,106 The state does not produce any fuel ethanol, an oxygenate blended into motor gasoline, and Arizona receives the fuel ethanol supplies it needs from midwestern states.^107,108,109 In 2023, the industrial sector accounted for 9% of the state's petroleum consumption. The commercial sector used 3%, and the residential sector, where about 3 in 100 households use petroleum products, mostly propane, for space heating, consumed 1%.^110,111

Natural gas

Arizona has no significant natural gas reserves.¹¹² The state's annual natural gas gross withdrawals declined from a peak of more than 2.1 billion cubic feet in 1990 to 29 million cubic feet in 2023.¹¹³ Almost all the natural gas consumed in Arizona comes from other states via interstate pipelines that enter Arizona from New Mexico. About three-fifths of the natural gas that enters the state continues on to California, and about 4% goes to Mexico. Arizona uses one-third of the natural gas that it receives.^114,115 Arizona has no natural gas underground storage capacity, but the state has potential to develop natural gas storage in salt caverns.^116,117 However, an above-ground liquefied natural gas storage facility near Tucson came online in late 2019.¹¹⁸ The public utilities commission is exploring how to add more natural gas storage in the state.¹¹⁹

The electric power sector uses the largest share of the natural gas consumed in Arizona. In 2024, it accounted for 80% of the natural gas deliveries to state consumers. Although one in three Arizona households use natural gas as their primary home heating fuel, the residential sector accounted for 8% of the state's natural gas consumption. The commercial sector used about 7%, and the industrial sector accounted for 4%. The transportation sector used a small amount as vehicle fuel.^120,121 Overall, Arizona's per capita natural gas consumption was less than in all but 14 other states in 2023.¹²²

Coal

Arizona currently has no coal production and coal has not been produced in the state since 2020.¹²³ However, areas in the northeastern part of the state on the Navajo and Hopi reservations and in east-central Arizona have some coal reserves.¹²⁴ The state's last coal mine, the Kayenta mine, ceased operations in 2019 because its only customer, the coal-fired Navajo Generating Station, closed.¹²⁵ Before its closure, that mine was one of the 30 largest coal mines in the nation, and in 2018 it accounted for almost 1% of the nation's coal production.¹²⁶ In 2023, the electric power sector used almost all the coal consumed in Arizona, and that coal was delivered by rail from Wyoming, New Mexico, and Montana. The remaining coal was received from Colorado and was used by the state's industrial plants.¹²⁷ In 2024, Arizona consumed about 6 million tons of coal, about one-fourth of the amount of coal the state used in 2014.¹²⁸ Since 2012, about 3,340 megawatts of coal-fired power has been retired in Arizona. As of April 2025, the state had three coal-fired power plants, with a combined generating capacity of almost 2,600 megawatts.¹²⁹

Energy on tribal lands

Arizona is home to 22 federally recognized Native American tribes and 3 of the nation's 10 largest reservations as measured by land area, including most of the Navajo Nation's, the largest reservation in the United States.^{130,131,132,133} Only Oklahoma has more Native American residents than Arizona.¹³⁴ As tribes and individuals, Native Americans hold more than one-fourth of Arizona's land—the largest share in any state and second only to Alaska in total acreage—and almost all of Arizona's energy mineral resources are on tribal lands.^135,136,137

All of Arizona's commercial coal production was on the Navajo and Hopi reservations and no coal has been produced in the state since 2020. Until its closure in 2019, the state's largest coal-fired power plant was also on tribal land.^138,139 Several natural gas pipelines, electricity transmission lines, hydroelectric dams, and uranium resources are located on Arizona's reservations.¹⁴⁰ From 1944 to 1986, more than 500 uranium mines on Navajo Nation land, mostly in Arizona, produced almost 30 million tons of ore. Although most of these mines are abandoned, uranium mining resumed in January 2024 at the Pinyon Plain Mine, located on tribal lands.^141,142 The Navajo Nation opposed the transportation of uranium across tribal lands and reached a transport agreement with the company operating the mine.¹⁴³

The largest producing oil field in Arizona—Dineh-bi-Keyah, known as The People's Field—is on the Navajo Nation reservation. The field has produced about 19 million barrels of crude oil since its discovery in 1967. Dineh-bi-Keyah field and other areas on the reservation contain reserves of helium gas, which is widely used in scientific, medical, and industrial equipment.^144,145,146

Many Arizona tribes have significant solar, geothermal, wind, and biomass resources suitable for on-site generation of electricity.^147,148 The nation's top three tribes with the greatest solar power generation potential—both solar thermal and utility-scale solar PV—are in Arizona, as well as the top two tribes with the greatest potential for geothermal-sourced generation. The Navajo reservation, in large part because of its size, has the largest solar and geothermal energy potential among all U.S. reservations.¹⁴⁹ In 2017, the first large-scale solar PV facility on Navajo land came online with 27 megawatts of capacity. In 2019, the facility added another 28 megawatts of capacity.^150,151 The Navajo Tribal Utility Authority (NTUA), established in 1959, is the first and largest multi-utility enterprise owned and operated by a tribe in the nation.^152,153 In 2024, NTUA provided electric service to the homes of 407 Navajo families, set up 1 home with residential solar off-grid unit, and added 380 homes to its electricity system. In 2025, the NTUA is planning to connect 523 tribal families to the electric grid and install 125 off-grid residential solar systems.¹⁵⁴ The U.S. Department of Energy has funded numerous Arizona tribal energy projects during the past decade.¹⁵⁵

Endnotes

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⁵ National Renewable Energy Laboratory, Geospatial Data Science, Solar Resource Maps and Data, Global Horizontal Solar Irradiance, updated February 22, 2018.
⁶ National Renewable Energy Laboratory, Geothermal Energy, NREL/FS-6A20-74263 (February 2020).
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