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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Xcel Energy Announces Portfolio of New Power Projects to Meet Growing Demand in Texas and New Mexico

Resource portfolio supports electric reliability, grid resilience and economic growth

Xcel Energy has announced new generation resource additions as part of an overall portfolio to meet the rapidly rising energy needs of its Texas and New Mexico service area. The portfolio includes extensions of 521 megawatts of existing generation as well as the addition of 17 new power projects that will add 5,168 megawatts of new nameplate capacity to the region’s generation fleet by 2030. Technologies selected include 3,200 megawatts of dispatchable generation and energy storage and 1,968 megawatts of wind and solar facilities, establishing the foundation for long-term system reliability, economic development and a resilient 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,” said 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.”

The region’s electricity demand is expected to grow by more than 40% by 2030, driven by population growth, industrial expansion and increased electrification. New planning reserve margin requirements from the Southwest Power Pool further raise the bar, with utilities now required to have more capacity to meet increasing seasonal demand.

In 2024, Xcel Energy invited developers to submit proposals for new power projects using any type of technology. This open and competitive process resulted in a diverse mix of energy solutions, including wind, solar, battery storage and gas power sources. The projects will be developed through a variety of ownership structures. Some will be built and owned by Xcel Energy, others built by developers and then sold to the company, and some operated under long-term agreements to purchase the power they produce. The portfolio also includes extending the lives of existing natural gas units at Nichols, Maddox, and Plant X, which supports reliability and lowers overall costs of the portfolio.

The portfolio supports Xcel Energy’s broader five-year investment plan for Texas and New Mexico, announced in October 2024, which will modernize and expand the region’s energy infrastructure. Many of the proposed projects will be built at existing power plant sites, reducing development timelines and leveraging existing infrastructure to interconnect new generation to the grid. This approach reinvests in host communities, saves customers money and helps shorten development timelines, allowing new power plants to come online more quickly.

The projects are also expected to deliver significant economic benefits across both states. In New Mexico, a third-party analysis projects up to $5 billion in economic impact over five years, driven by oil and gas industry expansion and increased electrification. In Texas, the projects will help meet growing demand in the Panhandle and other high-growth areas, while supporting job creation, tax revenue and infrastructure investment in rural and urban communities alike.

To help meet New Mexico’s 50% renewable energy requirement by 2030, two solar projects are also included as additions to the portfolio and will be dedicated to New Mexico customers.

Xcel Energy will seek approval of the portfolio from state regulators in the second half of 2025. Encouraged by developer response to this recent solicitation and to increase speed to market for new customers and those seeking to expand their regional operations, the company plans to issue another all-source request for proposals to secure additional resources to be operational by 2032.

About Xcel Energy

Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.

We are committed to leading the clean energy transition, meeting our customers’ need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.

Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas. For more information, visit xcelenergy.com or follow us on X, and Facebook.

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