Following evaluation of proposals, Xcel Energy announced plans this week to add three large solar generating facilities near existing power plants in New Mexico and Texas, while extending a power purchase contract for firm, dispatchable power generation.
These approximately 280 MW of potential capacity of resources would replace generation capacity from older facilities preparing to retire – namely the Cunningham Generating Station and Plant X Generating Station. Both host natural gas-based units that have been in service since the 1950s and 1960s. By repurposing the facilities for solar purposes, Xcel sees an opportunity to utilize the existing workforce and save money through use of existing power grid connections.
“As clean energy technologies evolve, a diverse resource mix is of vital importance to ensure continued high reliability while maintaining the affordability of the power we provide,” Adrian Rodriguez, president of Xcel Energy – New Mexico, Texas, said. “Our region’s abundant sunshine provides some of the best solar power opportunities in the nation and these new projects help us fulfill commitments to our employees and host communities while utilizing one of our greatest natural resources.”
Xcel also signaled interest in new battery storage projects for the system to store up energy for later use. It will look into proposals for four hour duration battery resources and, if it likes what it sees, propose them to state regulators alongside the solar facilities and power purchase agreement extension.
Proposals will likely be submitted later this summer to regulatory bodies in both New Mexico and Texas, although decisions wouldn’t likely be reached until next year. If approved, Xcel stated that both solar plants could enter service by 2026 and 2027, respectively.
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