New Xcel Energy integrated resource plan targets power generation acquisitions in Southwest through 2030
In filing an Integrated Resource Plan (IRP) with the New Mexico Public Regulation Commission this week, Xcel Energy laid out a plan to acquire a mix of 5-10 GW of new power generation to meet regional power needs in New Mexico and Texas by 2030.
This was meant to balance things out in the face of older power plants retiring from service. Currently, peak demand in the region is just over 6 GW, and the company can expect to lose some of its existing offerings as plants like Texas’ Tolk Generating Station go offline. Population doesn’t adhere to business concerns, though, and the fact is: population and economic growth is fueling Xcel Energy’s service territory, the oil and gas industry continues to expand in the region and, soon enough, electric vehicle adoption will add further burdens to the grid.
“We have spent months working with our stakeholders and communities to assess future needs and to understand how our customers expect us to meet those obligations,” Adrian Rodriguez, president of Xcel Energy – New Mexico, Texas, said. “The resulting plan recognizes the importance of keeping power affordable and reliable across our service territory while meeting the goals of the New Mexico Energy Transition Act and our own carbon reduction targets.”
With its new plan, Xcel seeks to balance economic renewable resources with dispatchable, always ready generation to fill gaps left by the intermittent nature of wind and solar. The focus, according to Rodriguez, will be to utilize as much existing infrastructure as possible, such as replacing retired generating units with solar plus battery systems.
“We anticipate adopting new technologies that are commercially available and furthest along in development, where the engineering, cost and supportive public policy make them a good solution and fit for our customers,” Rodriguez said. “To reduce carbon emissions, we plan to pair our existing system with advanced technologies as they become available while continuing to meet customer expectations for reliable, affordable energy.”
The company plans to tap the federal Inflation Reduction Act’s offerings to lower the costs of any new projects. If approved by regulators, Xcel will next launch a Request for Proposals (RFP) in mid-2024, extending an offer of applications from all sources of energy. An independent monitor would evaluate them and determine the best options for filing with regulators in 2025.
If everything goes smoothly, new sources could be online by 2028.
