Xcel Energy unveils 187 MW of PPAs in Minnesota

Oct 27, 2014 - US utility Xcel Energy (NYSE:XEL) has reached power purchase deals for 187 MW of solar capacity in Minnesota with NextEra Energy Resources, Juwi Solar and Community Energy Resources.

In a filing with state regulators on Friday, the company said it wanted to proceed with NextEra’s 62-MW project near Marshall and the 25-MW Juwi Solar scheme near Tracy. The future of the third project, a 100-MW solar park near North Branch, depends on whether Geronimo Energy will get final approval for a 100-MW distributed solar project.

Xcel Energy is adding more solar power to its portfolio in a bid to meet a state mandate that requires investor-owned utilities in Minnesota to source 1.5% of their electricity from solar parks by 2020. The three newly agreed power purchase agreements (PPAs), each for 25 years, will ensure 187 MW of solar generation at the end of 2016. The produced power will be enough to meet the needs of 41,000 households per year, Xcel calculates.

The utility had previously agreed to also buy power from Geronimo in connection with the latter's 100-MW distributed solar capacity plan in the state. The Minnesota Public Utilities Commission (PUC) in March gave preliminary approval to the Aurora project, which will comprise solar systems at as many as 20 locations. If it gets a final nod, the 100-MW solar proposal by Community Energy Resources may turn out unnecessary for Xcel.

According to a report by the Star Tribune from Saturday, Xcel has called on PUC to see whether the three newly proposed solar power deals are not offering better terms than Aurora. The utility did not reveal financial details on the PPAs for the 187 MW of solar projects, due to trade secrecy.

NextEra Energy Resources is the clean energy unit of NextEra Energy Inc (NYSE:NEE), while Juwi Solar is part of German renewable energy specialist Juwi Holding AG.

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