The company will promote eleven generation projects that combine solar energy, wind, battery storage and natural gas to respond to the projected growth in electricity demand by 2030.
The electricity supply in Texas and New Mexico, it will be strengthened with a portfolio of 3.928 MW of new generation capacity selected by Xcel Energy the eleven projects, which are scheduled to become operational by 2030, are part of the company’s strategy to meet the sustained growth in energy demand through a combination of solar, wind, battery storage and natural gas.
Electricity supply with diversified generation
The selection of projects was the result of a competitive request for proposals process open to all generation technologies. After evaluating more than fifty bids, Xcel Energy it chose a combination of resources designed to offer a balance between reliability, affordability, and long-term value for customers in Texas and New Mexico.
The portfolio comprises five solar plants, one solar project with battery storage, four wind farms, and one natural gas-fired power plant. This combination will allow for the incorporation of both renewable resources and dispatchable generation to maintain system stability when wind or solar power production decreases.
According to the company, starting the planning and execution of these initiatives now will allow them to take advantage of favorable market conditions and available federal incentives for the development of new energy projects.
Renewable energies to reduce costs
A significant portion of the new capacity corresponds to wind farm projects and solar, a strategy with which Xcel Energy hopes to reduce its customers’ exposure to fuel price volatility.
The company also highlighted that its wind assets have generated approximately $1.3 billion in savings for customers in Texas and New Mexico since 2017 thanks to reduced fuel costs and the use of tax credits. These results support the addition of more renewable generation to its electricity supply portfolio.
The company believes that the combination of solar, wind, battery storage and natural gas energy will allow it to respond more efficiently to the expected increase in electricity consumption, maintaining a balance between operational reliability and costs for users.
Data centers increase electricity demand
Community growth and new industrial investments continue to drive electricity demand in Texas and New Mexico. Key drivers include data centers and other large consumers that require a continuous, high-capacity supply.
Given this scenario, Xcel Energy announced that it will present specific tariff proposals for large electricity loads with the aim of ensuring that these new users assume the costs associated with the infrastructure necessary to meet their demand.
Brad Baldridge, interim president of Xcel Energy for Texas and New Mexico, noted that every decision the company makes stems from the needs of its customers and that this portfolio of projects seeks to prepare the electrical grid to support the region’s economic growth, strengthen communities, and provide reliable service for decades to come.
The proposed portfolio will still need to pass the review and approval process of regulatory bodies before construction can begin. Once authorized, it will incorporate 3.928 MW of new generation capacity that will contribute to strengthening the regional electricity supply towards 2030.
Source: Renewables Now
Photo: Shutterstock
