US utility Xcel Energy plans to accelerate renewable energy development so that by 2030 35% of its electricity will be from wind and solar.
“We plan to acquire significant amounts of wind and solar resources to help meet our future energy and capacity needs,” said Xcel in an update to its 2016-2030 Upper Midwest Resource Plan.
The company proposes to add 1800MW of wind, including 800MW by 2020, and 1400MW of large solar, including 400MW by 2020. Wind is set to increase from 15% to 25% of the energy mix by 2030.
The recent extension of the federal production tax credit significantly reduces the cost of new wind energy, said Xcel. To qualify for the full PTC, projects must secure a safe harbour designation by incurring at least 5% of the project costs by the end of 2016 and construction must be completed by the end of 2018.
“We believe it is in the best interest of our customers to obtain the full PTC value,” said Xcel. The utility expects to submit plans later this year for securing an additional 800MW of PTC wind.
Xcel also aims to meet a goal of 50% ownership of renewables. It now owns about a third of its wind resources and contracts for two-thirds through power purchase agreements.
The company also plans to accelerate the shuttering of some coal operations.
Minneapolis-based Xcel has regulated operations in eight midwestern and western states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin.
Image: Xcel Grand Meadow wind farm (Business Wire)
