Xcel Energy Plans 5 GW of New Power Projects to Meet Southwest Growth
Xcel Energy plans to add over 5 GW of new generation in Texas and New Mexico by 2030, with a mix of gas, renewables, and storage to meet rising power demand and grid reliability needs.
(P&GJ) — Xcel Energy plans to add more than 5 GW of new power capacity across Texas and New Mexico by 2030 to address rising energy demand driven by population growth, industrial expansion, and electrification.
According to a recent company announcement, the portfolio includes 17 new projects totaling 5,168 megawatts of nameplate capacity, alongside extensions of 521 megawatts from existing plants.
“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 of 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 plan includes 3,200 megawatts of dispatchable generation and storage, as well as 1,968 megawatts of new wind and solar capacity. Xcel said the mix will support long-term system reliability while helping meet state renewable energy targets, including New Mexico’s requirement for 50% renewable generation by 2030.
The new projects were selected through an open solicitation process that accepted proposals across all technologies. Some facilities will be owned directly by Xcel, while others will be developed by third parties and sold to the utility or operated under long-term power purchase agreements.
Xcel also plans to extend the life of existing natural gas units at its Nichols, Maddox, and Plant X stations, a move the company says will help manage costs while maintaining reliability.
Much of the new generation will be located at existing power plant sites to streamline development, reduce costs, and leverage current infrastructure. This approach is expected to deliver significant economic benefits, with a third-party analysis projecting up to $5 billion in economic impact in New Mexico over five years.
In Texas, the projects will address demand growth in the Panhandle and other high-growth regions, supporting new jobs, tax revenues, and infrastructure investments in both rural and urban areas.
Xcel Energy plans to submit the portfolio for state regulatory approval in the second half of 2025. The company also expects to issue another solicitation for additional resources to be online by 2032.