Xcel Energy announces portfolio of new power projects to help regional growing demand

AMARILLO, Texas (KAMR/KCIT) — 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.

According to Xcel officials, 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 electricity demand in the region is projected to rise by more than 40% by 2030, driven by factors such as population growth, industrial expansion, and increased electrification. Xcel Energy officials noted that new planning reserve margin requirements from the Southwest Power Pool have heightened expectations, requiring utilities to maintain additional capacity to satisfy the growing seasonal demand.

In 2024, Xcel Energy stated it 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. Officials stated the plan aims to modernize and expand the region’s energy infrastructure. Many proposed projects will be constructed at existing power plant sites, which will reduce development timelines and utilize existing infrastructure to connect new generation sources to the grid. This approach reinvests in host communities, reduces costs for customers, and expedites development timelines, allowing new power plants to come online more quickly.

The projects are expected to yield significant economic benefits for both states. In New Mexico, a third-party analysis estimates a potential economic impact of up to $5 billion over five years, driven by the expansion of the oil and gas industry and advancements in electrification. In Texas, these projects aim to address the increasing demand in the Panhandle and other rapidly growing regions, while also contributing to job creation, generating tax revenue, and investing in infrastructure for both rural and urban communities.

To help meet New Mexico’s 50% renewable energy requirement by 2030, two solar projects are also being added to the portfolio and will be dedicated to New Mexico customers. Xcel Energy noted it will seek approval of the portfolio from state regulators in the second half of 2025.

Encouraged by developer response to the recent solicitation and to increase speed to market for new customers and those seeking to expand their regional operations, Officials stated that the company plans to issue another all-source request for proposals to secure additional resources, aiming to be operational by 2032.