How Xcel Energy is putting the planet and customers first
Our plan for the clean energy future combines sustainability and affordability
Serving our customers has always been the cornerstone of our business and will be for years to come. That’s why we’re committed to delivering a future powered by clean, affordable, safe and reliable energy.
As part of Xcel Energy’s strategy to achieve net-zero emissions responsibly by 2050, we continue to invest in sustainable innovations and solutions that will advance the clean energy transition while keeping energy costs low for our customers.
In 2018, we became the first U.S. energy provider with a vision for delivering 100% carbon-free electricity by 2050 and were the first to add a net-zero goal for natural gas use in buildings and a zero-carbon transportation goal. Together, these goals cover three sectors that represent the most significant ways our customers use energy.
Addressing the risks of climate change is also one of our top priorities, and we use climate science to inform our clean energy strategy. Our carbon emissions trajectory for the electricity provided to customers and our net-zero vision for natural gas aligns with science-based scenarios likely to limit global warming to 1.5° C.
Here’s how we are working to reach our net-zero vision.
Accelerating a clean electricity future
Xcel Energy’s clean energy vision includes all the electricity that serves our customers. In 2023, we reduced carbon emissions 54% from the electricity we deliver compared to 2005, and by using resources such as wind, solar, nuclear and battery technology, we remain on track to achieve an 80% reduction in emissions and fully exit coal by the end of 2030. We are also partnering with industry peers, researchers, technology developers and venture investors to advance affordable, zero-carbon, 24/7 power technologies.
Our Clean Energy Plan in Colorado, for example, will add historic amounts of clean energy to the power grid and reduce carbon emissions from our system by 85% by 2030 from 2005 levels. Our updated Upper Midwest Energy Plan strives to achieve carbon emissions reductions between 80-88%, compared to 2005 levels, in Minnesota, Wisconsin, North Dakota, South Dakota and Michigan by the end of the decade and demonstrates a pathway to meet Minnesota’s standard of 100% carbon-free electricity by 2040.
Advancing cleaner natural gas service
In addition to our electric sector, we are working to reduce greenhouse gas emissions across the entire natural gas value chain. By 2050, we plan to achieve net-zero emissions and meet a 2030 interim goal of reducing greenhouse gas emissions from natural gas service by 25% from 2020 levels, including net-zero methane emissions from our own infrastructure.
Our goal covers all three aspects of the natural gas value chain: upstream production, the gas distribution system and customer emissions. For our 2030 interim goal, we plan to exclusively purchase 100% certified natural gas from our suppliers and have net-zero methane emissions on our own system while decreasing overall emissions by 25%, including our customers’ emissions.
Customer choice remains a top priority while we pursue our natural gas goal. We currently offer voluntary options and are expanding our programs and services so customers can choose the best heating solutions for their homes and businesses. This includes heat pump technologies, geothermal heat loop projects, and renewable natural gas.
In 2023 and 2024, we filed groundbreaking plans in Colorado and Minnesota in compliance with Colorado’s Clean Heat Statute and Minnesota’s Natural Gas Innovation Act, both of which create a pathway for making important investments to reduce greenhouse gas emissions while keeping customer bills top of mind.
We have a bold vision to become a net-zero energy provider by 2050.
Paving the road to clean transportation
Clean transportation is a key component of our net-zero vision, with a goal to power 1.5 million electric vehicles in the areas we serve by 2030, which will lead to cleaner air and billions of dollars in customer savings.
In 2023, more than 143,000 EVs were on the road in our service area, a 50% increase over 2022. By 2030, we plan to offer even more programs and infrastructure that deliver affordable charging at home, at work and on the go to all our customers as part of our plan to boost EV growth in our states to one in five vehicles. We are also continuing to make progress transitioning our corporate fleet of vehicles, recently adding 40 zero-emissions vehicles and construction equipment, bringing our total electrified fleet to nearly 300 vehicles.
Accessibility and environmental justice are vital to our electric transportation vision. By 2050, our goal is for all customers to access affordable charging at or within one mile of their homes and that underserved communities will have opportunities to participate in our programs and enjoy the economic development benefits. For example, in our recently filed multi-year Transportation Electrification Plan in New Mexico, we are proposing additional investments and expanded programs and services to address EV adoption barriers, such as enhancing offerings for income-qualified and underserved communities.
Learn more about our net-zero vision and ways you can reduce energy usage and save money.