Xcel Energy is increasing its investment in wind and solar power projects in Texas and New Mexico. The goal is to protect customers from changing fuel prices and meet the rising need for electricity.
The utility has selected new projects that will add up to 3,928 megawatts of power, such as one solar project with battery storage, five solar plants, four wind farms, and one natural gas plant.
Xcel Energy is eyeing to begin these projects by 2030, pending regulatory approval.
This investment is part of Xcel Energy’s plan to get ready for higher electricity demand. More people, new businesses, and energy-hungry sites like data centers are driving this growth. The company also wants to keep the grid reliable and control customer costs.
The Minneapolis-based company said it selected these projects after reviewing over 50 proposals in a competitive process. The company aims to deliver reliable power that is both affordable and valuable over time.
Xcel Energy said these projects allow it to take advantage of good market conditions and energy incentives from the federal government.
The company said its investments in renewable energy have already generated revenue. Since 2017, Xcel’s wind farms have saved customers in Texas and New Mexico about $1.3 billion by avoiding fuel costs and using federal tax credits.
The utility also said it plans to file large-load tariffs in Texas and New Mexico to ensure that major new electricity users, including data centers, pay the costs associated with serving their growing electricity demand.
