New Mexico PUC allows Xcel to buy 140 MW of solar power

The New Mexico Public Regulation Commission has approved utility Xcel Energy’s (NYSE:XEL) long-term offtake contracts with NextEra Energy Resources LLC for 140 MW of solar power.

Minneapolis-based Xcel Energy said in a statement on Thursday it expects to add the solar power capacity to its Texas-New Mexico system by the end of next year, once two 70-MW photovoltaic (PV) installations are completed near Roswell in Chaves County. Construction work is set to start in November.

Under the terms of the two power purchase agreements (PPAs) with NextEra, Xcel Energy will buy solar power starting at USD 0.035 (EUR 0.031) per kWh in 2017. The price is below the cost of generating power at some of Xcel’s older natural gas facilities, it said.

Upon completion of the two 70-MW plants, Xcel Energy’s total solar capacity on its Texas-New Mexico system will reach 200 MW.

(USD 1.0 = EUR 0.880)

Choose your newsletter by Renewables Now. Join for free!