Xcel Energy has announced plans to develop 5.2 gigawatts (GW) of new electricity generation capacity in Texas and New Mexico by the end of the decade, combining renewable energy, dispatchable generation, and storage to meet projected regional demand growth. The portfolio includes 2 GW of new renewable capacity and 3.2 GW of dispatchable assets, including natural gas and battery storage.
The planned additions span 17 new projects and an additional 521 megawatts (MW) from the expansion of existing facilities. In its 2023 Integrated Resource Plan (IRP) filed with the New Mexico Public Regulation Commission, Xcel’s subsidiary, Southwestern Public Service Company, projected a need for up to 10.2 GW of new capacity by 2030. The company has since approved 2 GW of natural gas capacity, 1.3 GW of wind, and 695 MW of solar power.
“This portfolio is about more than just adding power,” said Adrian Rodriguez, Xcel’s president for Texas and New Mexico. “We are working to increase speed to market with a stronger, modern and more resilient energy system that our customers can count on.”
The initiative reflects a broad approach to energy resource planning, especially in Texas, where the grid operates largely independently of the rest of the United States. The state has prioritized self-reliance and grid stability, often favoring diverse energy sources over exclusive investments in wind or solar.
Xcel’s plans include two new solar projects in New Mexico, in support of the state’s goal to source 50% of electricity from renewable energy by 2030. Details regarding the energy mix for the Texas projects have yet to be disclosed. The utility expects to seek regulatory approval for the full 5.2 GW portfolio later this year and intends to issue another all-source request for proposals—open to all generation technologies—by 2032.
