New generating resource additions have been announced by Xcel Energy as part of a broader portfolio to address the rapidly increasing energy demands of its service region in Texas and New Mexico. The portfolio consists of 17 new power projects and 521 megawatt expansions of current generating, bringing the region’s generation fleet to 5,168 megawatts of new nameplate capacity by 2030. 3,200 megawatts of energy storage and dispatchable production, together with 1,968 megawatts of wind and solar projects, are among the technologies chosen, laying the groundwork for long-term system dependability, economic growth, and a robust energy supply.
“This portfolio is about more than just adding power. We are working to increase speed to market with a stronger, modern and more resilient energy system that our customers can count on,” stated Adrian Rodriguez, president, Xcel Energy – Texas, New Mexico. “We’re investing in the right mix of resources to benefit customers by keeping electricity reliable and supporting economic growth so we can meet our region’s energy needs today and in the future.”
By 2030, the region’s power demand is predicted to increase by over 40% due to greater electrification, industrial expansion, and population growth. The threshold is further raised by the Southwest Power Pool’s new planned reserve margin standards, which mandate that utilities have greater capacity to meet rising seasonal demand.
Developers were asked to submit ideas for new power plants utilizing any kind of technology in 2024 by Xcel Energy. A wide range of energy alternatives, including gas, solar, wind, and battery storage, were produced as a consequence of this transparent and competitive approach. Several ownership models will be used to build the projects. Xcel Energy will build and own some of them, developers will build others and sell them to the firm, and some will be run under long-term contracts to buy the electricity they generate. In order to promote dependability and reduce the portfolio’s total costs, the portfolio also involves prolonging the lifespan of the current natural gas units at Nichols, Maddox, and Plant X.
The portfolio is in line with Xcel electricity’s larger five-year investment plan for Texas and New Mexico, which was unveiled in October 2024 and aims to upgrade and grow the electricity infrastructure in those states. In order to shorten construction schedules and use existing infrastructure to link new production to the grid, many of the planned projects will be constructed at the locations of existing power plants. In addition to saving consumers money and reducing construction timetables, this strategy reinvests in host communities and speeds up the commissioning of new power plants.
Significant economic advantages are also anticipated from the projects in both states. A third-party report estimates that the growth of the oil and gas sector and more electrification will have an economic impact of up to $5 billion in New Mexico over a five-year period. The projects in Texas will promote infrastructure investment, job development, and tax income in both rural and urban regions while also helping to fulfill the increasing demand in the Panhandle and other high-growth areas.
The portfolio also includes two solar projects that will be dedicated to New Mexico consumers in order to assist fulfill the state’s 50% renewable energy target by 2030.
In the second half of 2025, Xcel Energy will ask state authorities for approval of the portfolio. The corporation intends to release another all-source call for proposals in order to obtain more resources that will be operational by 2032, as encouraged by the developer response to this recent solicitation and to speed up speed to market for new clients and those looking to extend their regional operations.
