Xcel Energy sets wind energy record in Texas-New Mexico service area
Xcel Energy set a record in March in its Texas-New Mexico service area with the highest amount of energy ever generated from wind.
Boosted by Xcel Energy’s new Sagamore Wind Project in New Mexico, wind energy accounted for 51.1 percent of the region’s electricity supply in March, a record. It reached a new hourly peak production of more than 86 percent of the supply on April 11.
“Wind energy is a major component in the generating resources that produce clean, low-cost energy for a growing economy,” David Hudson, president, Xcel Energy – New Mexico, Texas, said. “The integration of such a large amount of wind energy was not possible two decades ago, but investments in our transmission grid have enabled us [to] take on more of these valuable energy resources for the benefit of our customers across our Texas-New Mexico region.”
Last year, before Sagamore came online, wind energy accounted for 32 percent of the electricity delivered to Xcel Energy’s Texas-New Mexico customers. With Sagamore operational, Xcel Energy expects that 40 percent of the region’s electricity supply will be derived from wind energy in 2021.
Xcel Energy has been adding wind energy into the regional generating mix for more than 20 years. In the last two years, the company added 1,000 megawatts of new wind generation from the Hale Wind Project near Plainview, Texas, and the Sagamore facility near Portales, New Mexico. These two facilities generate enough electricity to power 378,000 typical homes.
“We invested close to $2 billion in Hale and Sagamore, which had large positive impacts on the rural economies in their respective areas,” Hudson said. “These facilities will continue to enrich the rural economy by boosting tax revenues to counties and school districts and paying production royalties to farmers and ranchers. In turn, our customers benefit from 100 percent of the federal production tax credits associated with this production and by lower fuel costs since the fuel for wind turbines is free of charge.”
The fuel savings and tax credits combined are more than the annual cost to pay for the investments in Hale and Sagamore. They are now providing a net savings to customers, Hudson said.
