Xcel Energy makes progress on power projects aimed at meeting energy demands in New Mexico, Texas

Xcel Energy, a utility serving 128,000 customers in New Mexico, looks to address growing energy demands in its southwestern territories through a variety of new power projects.

Zoë Lees, Xcel Energy regional vice president of planning and policy, said the company recently purchased 10 gas turbines and will build two new combustion turbine power plants in Texas. Generated electricity will be deployed to its Southwestern Public Service Co. territories in New Mexico and Texas.

“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,” Adrian Rodriguez, Xcel Energy president for Texas and New Mexico, said in a statement.

The two plants are part of a broader portfolio outlining 17 projects Xcel Energy plans to have operating by 2030, Lees said. The new power projects will add over 5,000 megawatts of system capacity, all servicing New Mexico and Texas customers. It is unclear how much the company paid for the gas turbines, but the Texas plants are estimated to cost nearly $5 billion combined.

Technologies approved for the portfolio will include over 3,000 megawatts of dispatchable power and energy storage, as well as almost 2,000 megawatts of wind and solar. Three of the 17 are battery storage projects in New Mexico.

According to a company fact sheet, Xcel Energy’s projected energy mix for New Mexico will be 58% wind, 30% natural gas and 12% solar by 2030. Lees said the variety of power generation allows the utility to continue providing reliable electricity, even in events like inclement weather, to its customers in Tucumcari, Clovis, Roswell, Carlsbad, Hobbs and Portales.

In bringing more renewables onto the system, Lees said Xcel Energy can utilize those zero-fuel methods to manage customer costs. When the sun isn’t shining or the wind isn’t blowing, she said the utility can take advantage of the dispatchable generation.

“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,” Rodriguez said.

Editor’s Note: This story has been updated to include battery storage projects in New Mexico.