Xcel Energy Expands Power Portfolio in Texas and New Mexico to Meet Growing Demand

07/18/2025 – 01:26 PM

Xcel Energy (XEL) is doubling down on energy infrastructure in Texas and New Mexico, aiming to fuel a rapidly growing regional demand. The utility giant just unveiled a strategic resource portfolio designed to boost electric reliability, grid resilience, and, crucially, economic growth.

The plan includes extending the lifespan of 521 megawatts of existing generation capacity and injecting a hefty 5,168 megawatts of new nameplate capacity into the region’s power grid by 2030. This significant expansion will be achieved through 17 new power projects, a mix of 3,200 megawatts of dispatchable generation and energy storage, alongside 1,968 megawatts from wind and solar facilities.

“This is bigger than just adding power,” Adrian Rodriguez, president of Xcel Energy – Texas, New Mexico, told CNBC. “We’re focused on speed to market, constructing a modern and resilient energy system that our customers can depend on. We’re strategically investing in the optimal mix of resources to benefit consumers by ensuring reliable electricity and bolstering economic expansion, ensuring we can meet the energy demands of our region, now and well into the future.”

Xcel Energy projects a surge in electricity demand exceeding 40% by 2030, fueled by a population boom, industrial expansion, and increasing electrification across sectors. Adding pressure, new planning reserve margin requirements from the Southwest Power Pool mandate that utilities maintain even greater capacity to cope with escalating seasonal demand.

In a bid to find the best solutions, Xcel Energy launched an open call in 2024, inviting developers to propose new power projects using various technologies. The result? A diverse portfolio incorporating wind, solar, battery storage, and natural gas power. These projects will be developed under different ownership models, including those built and owned by Xcel Energy, those acquired from developers, and those operated under long-term PPA’s. Furthermore, extending the operational life of existing natural gas units at Nichols, Maddox, and Plant X is incorporated into the plan, which helps ensure generation reliablility and reduces the plan’s overall costs.

This portfolio is central to Xcel Energy’s broader five-year investment plan for Texas and New Mexico, announced in late 2024. This larger initiative focuses on modernizing and expanding the region’s energy infrastructure, with many of the proposed projects situated at existing power plant locations. This strategic approach leverages established infrastructure to speed up development, lower costs, and minimize community disruption.

The benefits extend beyond just power delivery. A third-party analysis in New Mexico projects up to $5 billion in economic impact over five years, driven by expansion in the oil and gas industry and rising electrification rates. In Texas, the projects are designed to meet surging demand in the Panhandle while simultaneously fostering job creation, increasing tax revenue, and stimulating infrastructure investment in both rural and urban communities.

To help meet New Mexico’s 50% renewable energy target by 2030, two solar projects are earmarked specifically for customers in the state.

Xcel Energy plans to seek regulatory approval for the portfolio in the second half of 2025. Encouraged by developer response from its recent solicitation and eager to expedite service for new and expanding regional custumers, the company will soon issue another request for proposals to ensure additional resources are available by 2032.

About Xcel Energy

Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.

We are committed to leading the clean energy transition, meeting our customers’ need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.

Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas. For more information, visit xcelenergy.com or follow us on X, and Facebook.

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Source: Xcel Energy