Xcel Energy Purchasing 140 MW Of Solar PV From Planned Developments In Roswell, New Mexico

One of the top utility companies in the US, Xcel Energy, has agreed to purchase electricity from two solar photovoltaic (PV) projects under development outside of Roswell, New Mexico, that will have a combined capacity of 140 megawatts (MW).

The two long-term power purchase agreements (PPAs) between Xcel Energy and the developer NextEra Energy Resources are currently in the approval process — pending a decision from the New Mexico Public Regulation Commission.

Xcel Energy is reportedly looking to complete the addition of the two projects before the federal investment tax credits for new projects end — which is currently slated for 2016.

Commenting on the deals, the president of Southwestern Public Service Company (an Xcel Energy subsidiary), David Hudson, noted the deals should help the company keep costs low.

“Not only is solar energy dropping in price, it also displaces megawatts generated from some of our older, less-efficient natural gas-fueled plants. 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.”

The Xcel Energy regional manager for Community & Economic Development in Roswell, Mike McLeod, noted that the purchase/projects would benefit the surrounding areas.

“The NextEra Energy Resources projects, like all other renewable energy developments, increase the value of rural land. In turn, the higher values generate more long-term tax revenue for local governments.”

No arguments there. A good move all around to my eyes. Especially considering all of the drama and corruption involving solar energy in New Mexico’s neighbour, Arizona.

Image Credit: Xcel Energy