Xcel Energy proposes $15 billion plan to add renewable energy to its system - The Denver Gazette
Xcel Energy proposes $15 billion plan add renewable energy | Business | denvergazette.com
Xcel Energy proposed a $15 billion “preferred plan” to add an “unprecedented” amount of renewable energy to its grid over the next seven years that would double the amount of renewable energy on the system.
The company’s Clean Energy Plan, submitted to the Colorado Public Utilities Commission Tuesday, shows Xcel could add $10 to the average residential customer’s bill by 2030.
The company said in the plan it wants to take advantage of $10 billion in Inflation Reduction Act tax credits to reduce costs to ratepayers, but it’s unclear where the other $5 billion will come from. Xcel did not respond to a request for clarification before press time.
“We are excited about the plan we’ve brought before the Commission, as it delivers significantly more wind, solar, and storage to our system, along with sustainable biomass and strategically necessary amounts of natural gas resources,” said Robert Kenney, president of Xcel Energy—Colorado. “This plan relies on proven technologies, while using emerging technologies like battery storage to provide a balanced mix of resources that meet Colorado’s energy goals.”
The plan would reduce carbon emissions by more than 80%, according to the company, and ends the use of coal by 2030 and invests in communities, including those impacted by retiring coal plants and closing coal mines.
“From 2017 through 2021, wind farms on the Xcel Energy system in Colorado saved customers $700 million in avoided fuel costs and tax credits,” according to a company news release.
The plan also includes $2.57 billion in new transmission infrastructure for the Denver metro area, the San Luis valley and elsewhere in the state. This comes on top of the already-approved $1.7 billion Power Pathway project in eastern Colorado.
The Clean Energy Plan includes 22 new energy projects including:
- 3,400 MW of wind generators
- 1,970 MW of solar panels
- 1,170 MW of storage
- 19 MW of biomass
The PUC will consider the preferred plan, as well as several alternative portfolios. A decision is expected later this year.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”