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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota) wants to invest up to $15 billion to build renewable generation, energy storage and gas-fired generation in Colorado, according to a plan the utility submitted to state utility regulators last week. Xcel Energy plans to have federal tax credits cover about $10 billion of the plan's cost, lowering the plan's cost paid by its customers to about $5 billion.
Specific information on the names of proposed projects was redacted in the utility's 184-page filing with the Colorado Public Utilities Commission (CPUC) (Denver, Colorado), made September 19. But a list of the types and sizes of generators was provided. The utility's preferred generation plan, chosen after a request for proposals (RFP), includes:
Implementing the plan would make Xcel Energy's Colorado resource base 80% renewable, among the highest in the nation if not the highest. As well, the plan envisions transmission investments and investments in communities where coal plants are scheduled to retire.
Click on the image at right to see a graph showing Xcel Energy's declining carbon emissions that would result if Colorado utility regulators approve the company's Clean Energy Plan.
The generation the utility will lose when one of its coal-fired plants, Hayden Power Station, is retired early is slated to be replaced by a biomass plant that will burn forest waste from fire prevention activities and Rocky Mountain pine-beetle-kill wood, Robert Kenney, president of Xcel Energy's Colorado division, told The Denver Post.
The other two coal-fired plants to be closed by 2030 are the Pawnee Generating Station and the Comanche Power Station. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can read detailed profiles of the Hayden, Pawnee and Comanche stations.
The Clean Energy Plan includes 22 new energy projects, with Xcel Energy owning about two-thirds of the projects. It also includes investments in transmission infrastructure to enhance reliability in the Denver metro area and throughout the state, the utility said in its statement.
"We are excited about the plan we've brought before to the Commission, as it delivers significantly more wind, solar and storage to our system, along with sustainable biomass and strategically necessary amounts of natural gas resources," said Robert Kenney, president of Xcel Energy's Colorado division, in a statement September 19. "We listened to our stakeholders who want a smart, affordable, sustainable transition to cleaner energy while providing a just transition for impacted communities and employees. 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."
A decision by Colorado utility regulators is expected later this year.
The plan was welcomed by Colorado Governor Jared Polis (D): "Increasing use of low-cost renewable energy sources and energy storage will save Coloradans money and move the state closer to achieving our clean energy goals. I applaud Xcel Energy for their commitment to reducing emissions, delivering better value for consumers and protecting the future of our state."
Xcel Energy has been aggressively decarbonizing its multistate generation portfolio for years. The company, headquartered in Minnesota, provides electricity and natural gas to millions of customers in eight Midwestern and Western states. For more on the utility's decarbonization efforts, see August 29, 2023, article - Xcel Energy Ready to Extend Life of Monticello Nuclear Plant; May 12, 2022, article - Xcel Energy Prepares to Issue RFPs for Renewable, Carbon-Reduction Projects; and October 29, 2021, article - Xcel Energy Makes Way Toward Future Filled With Renewables.
After years of decarbonization, wind now accounts for 40% of the electricity Xcel Energy generates in Colorado. Solar accounts for 11% of its electricity generated in the state. If the utility's preferred portfolio is approved by Colorado utility regulators, about 58% of the utility's electricity in Colorado will come from wind by 2028. Solar will more than double to 24% by that date.
Click on the image at right to see Xcel Energy's current fuel mix and its projected fuel mix in 2028 if regulators approve the utility's preferred plan.
Xcel Energy estimated that wind generation installed on its system in Colorado from 2017 through 2021 has saved customers hundreds of millions of dollars in fuel costs. The projects included in the September 19 filing were chosen from more than 1,000 energy project proposals submitted in response to an RFP issued by Xcel Energy.
Using $10 billion of tax credits provided in the Inflation Reduction Act to pay for 66% of the cost of the Clean Energy Plan would lower the out-of-pocket price increases to its Colorado customers to about 2.3% per year.
The plan also was lauded by a local environmental group, Western Resources Advocates (WRA) (Boulder, Colorado), and one of the unions representing the utility's workers, the International Brotherhood of Electrical Workers (IBEW) Local 111.
"Western Resource Advocates is very encouraged to see that Xcel Energy's preferred portfolio exceeds the requirement to reduce climate changing greenhouse gas pollution at least 80% by 2030. This plan further solidifies Xcel Energy's reputation as a leader in the transition to clean electricity generation," said Erin Overturf, WRA's clean energy director.
"I am pleased to see that Xcel Energy is working diligently in their plan to take advantage of the strong labor standards and workforce training agenda contained in the incentives included in the Inflation Reduction Act," added Nate Gutierrez, business manager for IBEW Local 111. "IBEW Local 111 and Xcel Energy must work collaboratively to meet the workforce needs of our utilities to ensure the state meets its goals and that we serve our customers to promote safe and reliable service," he said in the September 19 statement.
Not everyone is a fan. The Denver Post quoted a representative of the Sierra Club as criticizing the plan because it included new gas-fired generation.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Specific information on the names of proposed projects was redacted in the utility's 184-page filing with the Colorado Public Utilities Commission (CPUC) (Denver, Colorado), made September 19. But a list of the types and sizes of generators was provided. The utility's preferred generation plan, chosen after a request for proposals (RFP), includes:
- Seven stand-alone wind-power projects ranging in size from 375 to 905 megawatts (MW), for a total of 3,406 MW
- Four stand-alone solar projects ranging in size from 115 to 355 MW, totaling 1,105 MW
- Four solar-and-storage projects, in which the solar generation elements range from 90 to 325 MW and the storage elements range from 72 to 200 MW. All told, the proposed solar generation of these four projects is about 864 MW, while the storage capacity of these four projects is approximately 572 MW
- Three stand-along storage projects, each with storage capacities of about 200 MW
- Three gas-fired plants totaling 628 MW
- One biomass plant with 28 MW of generation capacity
Implementing the plan would make Xcel Energy's Colorado resource base 80% renewable, among the highest in the nation if not the highest. As well, the plan envisions transmission investments and investments in communities where coal plants are scheduled to retire.
Click on the image at right to see a graph showing Xcel Energy's declining carbon emissions that would result if Colorado utility regulators approve the company's Clean Energy Plan.The generation the utility will lose when one of its coal-fired plants, Hayden Power Station, is retired early is slated to be replaced by a biomass plant that will burn forest waste from fire prevention activities and Rocky Mountain pine-beetle-kill wood, Robert Kenney, president of Xcel Energy's Colorado division, told The Denver Post.
The other two coal-fired plants to be closed by 2030 are the Pawnee Generating Station and the Comanche Power Station. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can read detailed profiles of the Hayden, Pawnee and Comanche stations.
The Clean Energy Plan includes 22 new energy projects, with Xcel Energy owning about two-thirds of the projects. It also includes investments in transmission infrastructure to enhance reliability in the Denver metro area and throughout the state, the utility said in its statement.
"We are excited about the plan we've brought before to the Commission, as it delivers significantly more wind, solar and storage to our system, along with sustainable biomass and strategically necessary amounts of natural gas resources," said Robert Kenney, president of Xcel Energy's Colorado division, in a statement September 19. "We listened to our stakeholders who want a smart, affordable, sustainable transition to cleaner energy while providing a just transition for impacted communities and employees. 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."
A decision by Colorado utility regulators is expected later this year.
The plan was welcomed by Colorado Governor Jared Polis (D): "Increasing use of low-cost renewable energy sources and energy storage will save Coloradans money and move the state closer to achieving our clean energy goals. I applaud Xcel Energy for their commitment to reducing emissions, delivering better value for consumers and protecting the future of our state."
Xcel Energy has been aggressively decarbonizing its multistate generation portfolio for years. The company, headquartered in Minnesota, provides electricity and natural gas to millions of customers in eight Midwestern and Western states. For more on the utility's decarbonization efforts, see August 29, 2023, article - Xcel Energy Ready to Extend Life of Monticello Nuclear Plant; May 12, 2022, article - Xcel Energy Prepares to Issue RFPs for Renewable, Carbon-Reduction Projects; and October 29, 2021, article - Xcel Energy Makes Way Toward Future Filled With Renewables.
After years of decarbonization, wind now accounts for 40% of the electricity Xcel Energy generates in Colorado. Solar accounts for 11% of its electricity generated in the state. If the utility's preferred portfolio is approved by Colorado utility regulators, about 58% of the utility's electricity in Colorado will come from wind by 2028. Solar will more than double to 24% by that date.
Click on the image at right to see Xcel Energy's current fuel mix and its projected fuel mix in 2028 if regulators approve the utility's preferred plan.Xcel Energy estimated that wind generation installed on its system in Colorado from 2017 through 2021 has saved customers hundreds of millions of dollars in fuel costs. The projects included in the September 19 filing were chosen from more than 1,000 energy project proposals submitted in response to an RFP issued by Xcel Energy.
Using $10 billion of tax credits provided in the Inflation Reduction Act to pay for 66% of the cost of the Clean Energy Plan would lower the out-of-pocket price increases to its Colorado customers to about 2.3% per year.
The plan also was lauded by a local environmental group, Western Resources Advocates (WRA) (Boulder, Colorado), and one of the unions representing the utility's workers, the International Brotherhood of Electrical Workers (IBEW) Local 111.
"Western Resource Advocates is very encouraged to see that Xcel Energy's preferred portfolio exceeds the requirement to reduce climate changing greenhouse gas pollution at least 80% by 2030. This plan further solidifies Xcel Energy's reputation as a leader in the transition to clean electricity generation," said Erin Overturf, WRA's clean energy director.
"I am pleased to see that Xcel Energy is working diligently in their plan to take advantage of the strong labor standards and workforce training agenda contained in the incentives included in the Inflation Reduction Act," added Nate Gutierrez, business manager for IBEW Local 111. "IBEW Local 111 and Xcel Energy must work collaboratively to meet the workforce needs of our utilities to ensure the state meets its goals and that we serve our customers to promote safe and reliable service," he said in the September 19 statement.
Not everyone is a fan. The Denver Post quoted a representative of the Sierra Club as criticizing the plan because it included new gas-fired generation.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
