Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released January 24, 2018 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota) is deepening its commitment to wind energy with two projects in the Southwest that add to its wind development activity in Colorado, the Midwest and the Plains.
Last month, the New Mexico Attorney General signed off on Xcel's plan to buy the 520-megawatt (MW) Sagamore Wind Project, located in Roosevelt County, New Mexico. Xcel estimated the purchase price would be about $865 million. For more on that project, see Industrial Info's project report.
In a separate transaction, Xcel plans to buy the 480-MW Hale Wind Project, located in Hale County, Texas. That project is valued at about $769 million. For more on the Hale Wind Project, see Industrial Info's project report.
"These new wind facilities will cost $1.6 billion to build, but will allow us to produce wind energy at a cost lower than energy produced at our coal- and natural gas-fueled plants," David Hudson, president of Xcel Energy for New Mexico and Texas, said in an early 2017 statement announcing the acquisition of the Sagamore and Hale projects. "These lower energy costs, in addition to savings from tax credits, add up to more than $2.8 billion in nominal customer savings over 30 years."
"We know these projects will deliver lower-cost electricity, protect the environment and boost local economic development," Hudson said in a statement December 11 after New Mexico Attorney General Hector Balderas, consumer advocates and others reached a settlement with Xcel Energy over the acquisition of the Sagamore Wind Project.
Texas' Hale Wind Project, purchased from a unit of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), also included a 220-MW power purchase agreement with NextEra for windfarms it is developing near Amarillo, Texas.
NextEra is developing three additional phases to the Hale Wind Project: East Mound II, Hale County III and Cottonwind IV. All three projects have between 200 MW and 250 MW of generating capacity, according to Industrial Info's Global Marketing Intelligence (GMI) project platform. The aggregate total investment value (TIV) of these three proposed windfarms is about $1.4 billion. East Mound II is scheduled to break ground at the end of 2019, while Hale County III is scheduled to begin construction in late 2020 and Cottonwind IV is expected to begin construction in early 2021.
In addition to making renewable energy investments in the Southwest, Xcel Energy also is investing heavily in renewable energy in Colorado, the Plains and the Midwest. For more on that, see July 13, 2017, article - Minnesota Regulators Approve Xcel Wind Project Buildout, and May 25, 2017, article - Xcel Energy to Spend Billions on New Wind Projects.
When a wind project Xcel is developing in South Dakota, the Dakota Range Windfarm, is constructed, it will make Xcel Energy the first utility in the U.S. to surpass 10,000 MW of wind power on its system. That's enough electric generating capacity to power every home in Minnesota and Wisconsin, the utility said. For more information on that project, see Industrial Info's project report and September 27, 2017, article - Xcel Energy Expands Wind Footprint with South Dakota Project.
"As the nation's No. 1 utility wind provider for more than a decade, we've long recognized this abundant natural resource provides tremendous value to our customers and communities," said Ben Fowke, Xcel Energy chairman, president and chief executive, in a September 27, 2017, statement announcing the South Dakota project. "Wind power is emissions-free and cheaper than fossil fuels, allowing us to deliver lower prices and cleaner energy to our customers today and in the decades to come."
"By investing so heavily in renewable energy, Xcel Energy is helping move the industry further and faster into a cleaner energy future," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "Xcel Energy is benefitting from dramatic cost reductions in wind-power costs and the continued availability of tax credits, which, when combined, result in lower electric generation costs than coal- or gas-fired generation."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Last month, the New Mexico Attorney General signed off on Xcel's plan to buy the 520-megawatt (MW) Sagamore Wind Project, located in Roosevelt County, New Mexico. Xcel estimated the purchase price would be about $865 million. For more on that project, see Industrial Info's project report.
In a separate transaction, Xcel plans to buy the 480-MW Hale Wind Project, located in Hale County, Texas. That project is valued at about $769 million. For more on the Hale Wind Project, see Industrial Info's project report.
"These new wind facilities will cost $1.6 billion to build, but will allow us to produce wind energy at a cost lower than energy produced at our coal- and natural gas-fueled plants," David Hudson, president of Xcel Energy for New Mexico and Texas, said in an early 2017 statement announcing the acquisition of the Sagamore and Hale projects. "These lower energy costs, in addition to savings from tax credits, add up to more than $2.8 billion in nominal customer savings over 30 years."
"We know these projects will deliver lower-cost electricity, protect the environment and boost local economic development," Hudson said in a statement December 11 after New Mexico Attorney General Hector Balderas, consumer advocates and others reached a settlement with Xcel Energy over the acquisition of the Sagamore Wind Project.
Texas' Hale Wind Project, purchased from a unit of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), also included a 220-MW power purchase agreement with NextEra for windfarms it is developing near Amarillo, Texas.
NextEra is developing three additional phases to the Hale Wind Project: East Mound II, Hale County III and Cottonwind IV. All three projects have between 200 MW and 250 MW of generating capacity, according to Industrial Info's Global Marketing Intelligence (GMI) project platform. The aggregate total investment value (TIV) of these three proposed windfarms is about $1.4 billion. East Mound II is scheduled to break ground at the end of 2019, while Hale County III is scheduled to begin construction in late 2020 and Cottonwind IV is expected to begin construction in early 2021.
In addition to making renewable energy investments in the Southwest, Xcel Energy also is investing heavily in renewable energy in Colorado, the Plains and the Midwest. For more on that, see July 13, 2017, article - Minnesota Regulators Approve Xcel Wind Project Buildout, and May 25, 2017, article - Xcel Energy to Spend Billions on New Wind Projects.
When a wind project Xcel is developing in South Dakota, the Dakota Range Windfarm, is constructed, it will make Xcel Energy the first utility in the U.S. to surpass 10,000 MW of wind power on its system. That's enough electric generating capacity to power every home in Minnesota and Wisconsin, the utility said. For more information on that project, see Industrial Info's project report and September 27, 2017, article - Xcel Energy Expands Wind Footprint with South Dakota Project.
"As the nation's No. 1 utility wind provider for more than a decade, we've long recognized this abundant natural resource provides tremendous value to our customers and communities," said Ben Fowke, Xcel Energy chairman, president and chief executive, in a September 27, 2017, statement announcing the South Dakota project. "Wind power is emissions-free and cheaper than fossil fuels, allowing us to deliver lower prices and cleaner energy to our customers today and in the decades to come."
"By investing so heavily in renewable energy, Xcel Energy is helping move the industry further and faster into a cleaner energy future," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "Xcel Energy is benefitting from dramatic cost reductions in wind-power costs and the continued availability of tax credits, which, when combined, result in lower electric generation costs than coal- or gas-fired generation."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
