Xcel Energy XEL purchased a wind project named Hale Wind Project in Texas from NextEra Energy Resources - a subsidiary of NextEra Energy NEE . The construction of the 478-megawatt (MW) wind project will need nearly $735 million. Meanwhile, the terms of the deal have not been disclosed.
Construction work is expected to start this month, subject to approval from regulators of Texas and New Mexico.
2 Wind Farms in Texas-New Mexico Border
Xcel Energy has been advocating the use of renewable energy in electricity generation. The company plans to add 3,700 MW of wind power projects within the 2017-2021 period by adding 12 new wind farms in seven states.
Development of wind projects in the Texas-New Mexico area is under the total wind expansion plan. The company received the required approval from the commission to build wind farms in these regions with a capacity of 1,230 MW. In addition to the 478 MW Hale Wind project in Texas and 522 MW Sagamore Wind project in Roosevelt County, New Mexico, the company intends to purchase power from the 230-MW Bonita wind project that is developed by NextEra Energy Resources.
Xcel Energy generates electricity through coal, natural gas, nuclear, other renewable, solar and wind energy sources. The company is planning to lower emission and is on track to reduce carbon emissions by 60% from 2005 levels by 2030.
Renewable Energy Replacing Fossil Fuel
Over the last few years, dependency on fossil fuel, particularly coal, is gradually declining. The need for an emission-less environment is pushing the industry toward renewable energy. Coal is the primary source of greenhouse gas emissions and thus Utilities are shifting to renewables and other clean sources to generate electricity.
Other electric utilities like NRG Energy Inc NRG and Dominion Energy Inc. D are also focusing on cleaner sources to produce electricity.
In the past 12 months, shares of Xcel Energy have gained 2.3% compared with its industry `s gain of 0.3%.