US utility Xcel Energy has purchase agreements to buy 140 megawatts of solar power from two projects in New Mexico that are owned by NextEra Energy Resources.
The two photovoltaic plants are located near Roswell in New Mexico. Xcel plans to add the 140MW before the federal investment tax credits end for new projects in 2016. The two power-purchase agreements need to be approved by the New Mexico Public Regulation Commission.
Xcel Energy announced in 2014 it was seeking up to 200MW of solar energy for its Texas-New Mexico system. NextEra at that time was planning to build three solar projects near Roswell, including the two for which the PPAs have been signed.
David Hudson, president of Southwestern Public Service Company, an Xcel Energy company, said the cost of the solar energy to be purchased, aided by New Mexico’s production tax credit, is competitive with Xcel Energy’s gas-fueled generation, and will further support the company’s goal of keeping fuel costs low by using a resource that requires no fossil fuel, has no emissions and doesn’t require water to cool its systems.
“Not only is solar energy dropping in price, it also displaces megawatts generated from some of our older, less-efficient natural gas-fueled plants,” Hudson said. “This saves on fuel costs and environmental compliance for years to come, and these savings are passed directly on to our customers in Texas and New Mexico.”