Xcel Energy submits largest-ever request for new energy generation in Colorado
To move its nation-leading clean energy transition forward, Xcel Energy is seeking proposals for new energy generation in Colorado, including significant amounts of new renewable energy. The request for proposals from developers is the largest in the state’s history and is a key step toward delivering on the company’s Colorado Clean Energy Plan – driving major carbon reductions while ensuring reliability and affordability for customers.
The Colorado Clean Energy Plan is expected to reduce carbon emissions by at least 85% by 2030 compared to 2005 levels and provide customers with electricity from 80% renewable sources, while ending the use of coal by the end of 2030 and adding unprecedented renewable energy to the grid.
“This is a major step for Colorado’s clean energy future,” said Robert Kenney, president of Xcel Energy–Colorado. “The size and scope of the request reflects our continued leadership of the nation’s clean energy transition, while providing reliable, safe and affordable energy to our customers. This bidding process will determine the clean energy generation and technologies that will supply Colorado’s electrical grid for years to come.”
The company is primarily seeking proposals for solar, energy storage, wind and natural gas-fired generation. However, it will consider all bids for any generation type other than coal. Using a competitive process to add new resources helps ensure the and customers’ clean energy goals are met at a competitive price while replacing older generation with cleaner energy.
Since 2007, Xcel Energy has retired or has plans to retire more than 1,500 megawatts of coal-fired generation, including the scheduled retirement of Comanche 1 and 2 in 2022 and 2025, respectively, and replacing it with renewable and natural gas resources.
The new energy generation will support that include:
- The early retirement or conversion of Xcel Energy’s remaining coal units by the end of 2030. Hayden 2 will retire in 2027, Craig 2 and Hayden 1 will retire in 2028, Comanche 3 will retire by Jan. 1, 2031, and Pawnee will convert to natural gas no later than Jan. 1, 2026.
- Historic additions of carbon-free energy resources. Based on initial modeling, Xcel Energy anticipates adding approximately 2,300 megawatts of wind, 1,600 megawatts of large-scale solar, 400 megawatts of battery storage and 1,300 megawatts of flexible “always-available” generation. The actual level and type of resources acquired will be based on the bids received.
- Exceeding the state’s 2030 clean energy target of 80% emissions reduction from 2005 levels.
The request for proposal process will seek to acquire sufficient energy resources to meet Xcel Energy’s forecasted electric needs from 2023 through 2028. A future separate solicitation will acquire resources needed from 2029 through 2031.
Xcel Energy worked closely with labor organizations to ensure that the solicitation and bid evaluation process will provide the Colorado Public Utilities Commission (PUC) with the information necessary to give due consideration to labor-related issues as required by recent legislation. Bids from developers will be due by March 1, 2023. The company expects to file its bid evaluation report and recommended bid portfolio(s) for PUC review and approval in Q3 2023 with a PUC decision expected 90 days later.