Xcel Energy unveils $15bn plan to add 6.5GW of renewables and energy storage in Colorado
The plan, if approved by regulators, would enable the US utility to cut carbon emissions 80% by 2030
US utility Xcel Energy has proposed investing up to $15bn across the state of Colorado to add 6.5GW of renewable resources including energy storage and end the use of coal as fuel for power generation by 2030.
The Clean Energy Plan, if approved by the Colorado Public Utilities Commission (PUC), will take advantage of $10bn in tax credits available in the 2022 federal climate law for which all 22 proposed new projects will be eligible.
The projects, which will drive Xcel Energy-Colorado system generation to 80% renewable energy, include 3.4GW of wind, 1.97GW of solar, 1.17GW of storage, and 19MW of biomass. Excel will own two-thirds of the projects and contract for the remaining capacity.
“This plan relies on proven technologies, while using emerging technologies like battery storage to provide a balanced mix of resources that meet Colorado’s energy goals,” said Robert Kenny, president of Excel Energy – Colorado.
The plan, if adopted, as designed will meet the state’s 80% emission reduction target by 2030 and potentially exceed it, according to the utility.
Xcel would continue to use natural gas generation capacity to support local and systemwide reliability in Colorado where it is the dominant electricity provider.
The proposed renewable and storage resource would replace more than 1.3GW of retiring or expiring gas contracts, resulting in a decrease of 740MW of natural gas capacity on Xcel’s system.
The plan is the most ambitious one preferred by the utility among several alternative portfolios submitted for consideration to PUC, which is expected to select one in the fourth quarter.
Xcel claims the preferred plan would keep costs low for customers, with an average annual rate impact of 2.3%.
“This means that adjusted for inflation, the average residential customer’s monthly bill in 2030 will be about $10 more than today,” it said.
Xcel, which also serves the Upper Midwest, New Mexico, and Texas, has more renewable energy on its combined system than any other US utility except billionaire Warren Buffett’s Berkshire Hathaway Energy.
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