Xcel Energy is expanding its power generation capabilities in Texas and New Mexico, with specific plans for new natural gas-fired plants as part of its 5-gigawatt (GW) expansion. The company intends to convert a retiring coal-fired plant to natural gas, enhancing its operational flexibility and reducing emissions from the previous coal-fired operations. This conversion is a strategic move to modernize its generation fleet.
In addition to the conversion, Xcel Energy plans to build a new peaker plant. Peaker plants are designed to provide electricity during periods of high demand, ensuring grid stability and reliability when other generation sources may be insufficient. This dual approach of converting existing facilities and adding new peaker capacity addresses both environmental goals and the need for dispatchable power.
This development is part of the broader portfolio of new power projects announced for the Texas and New Mexico service area, which aims to add over 5,100 MW of new capacity by 2030. The inclusion of natural gas-fired generation underscores Xcel Energy's strategy to balance its clean energy transition with the imperative of maintaining reliable and affordable energy supply for its rapidly growing customer base.
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