US green giant Xcel bids to build 10GW of wind and solar plus powerline 'backbone'

US developer Xcel Energy aims to add almost 10GW of new utility-scale solar and wind this decade in the states of Minnesota and Colorado, where it is also is proposing a $1.7bn expansion of heavy-duty transmission lines to further enable gigawatts of future renewables build-out.

The Minneapolis-based utility, which vies with Warren Buffett’s Berkshire Hathaway Energy for having the most wind capacity on its electrical system, also announced it is on track to achieve 80% carbon reduction by 2030.

“Looking ahead we are well-positioned for sustainable organic growth over the next decade including affordable, renewable additions in our Colorado and Minnesota resource plans, the transmission needed to enable those carbon-free resources, and responsible transitions as we retire our coal plants,” CEO Bob Frenzel said, on an earnings call.

“We expect decisions on both the Colorado and Minnesota resource plans and the Pathway transmission project in the first quarter of the year,” he said, referring to utility regulators that are reviewing generation resource plans submitted by the company.

In Minnesota, Xcel proposes to add 3.15GW of utility solar, 2.65GW of wind, and exit coal-fired generation by the end of 2030.

In Colorado, Xcel seeks to add 2.3GW of wind, 1.6GW of utility solar, 1.2GW of distributed solar, and 400MW of utility battery storage capacity. With approval, the proposed investments would enable Xcel-subsidiary Public Service Company of Colorado to achieve an 80% renewable generation mix and 87% carbon reduction by 2030.

The proposed Colorado Pathway transmission expansion would be among the largest by a single utility in recent years involving renewables. It consists of 560 miles (901km) of 345kV lines and three new and four expanded substations.

The transmission “backbone” project would enable 5.5GW of new renewables – mainly wind - generation in the eastern plains of Colorado. The first segments would be in service by 2025 and the balance by 2027.

There is also potential for a 90-mile line extension “with an additional $250m investment to enable access to some of the richest wind resources in the region”, according to Frenzel.

“There is some discussion that a more modest version could potentially move forward this year,” he said, noting this could win support from Biden.

The mammoth flagship bill aims to both reassert US leadership on climate in the short-term and set the largest global economy on a path to achieve three 2030 goals: 80% carbon-free grid, 50% electric new vehicle sales, and 30GW installed offshore wind capacity.

“Our capital investment plan is not dependent on changes in federal policy. However, the energy provisions that were included in the BBB legislation would provide substantial customer benefits and help enable the clean energy transition,” said Frenzel, referring to more than $500bn to drive decarbonisation mostly in the power and transport sectors, the biggest sources of US greenhouse gas emissions.