Xcel Energy to include 150MW capacity to renewable energy portfolio

US-based provider of energy-related products and services Xcel Energy has revealed its plan to include about 150MW capacity to its renewable energy portfolio by executing large-scale solar projects in its Upper Midwest service territory by the end of 2016.

According to the company, a major portion of solar energy demand in Minnesota can be met through large-scale projects that are more efficient and less expensive as compared to rooftop solar and smaller distributed systems.

In a notification to the Minnesota Public Utilities Commission, Xcel Energy intended to issue a request for proposals associated with the projects by 15 April 2014.

The company also intended to complete the large-scale projects by 31 December 2016, prior to a reduction in the federal Investment Tax Credit for solar.

As per the energy bill passed in 2013 by the Minnesota Legislature, the investor-owned utilities require to purchase 1.5% of retail electricity sales from solar energy by 2020, and Xcel Energy is expected to need approximately 300MW of solar capacity to meet the standard.

According to the company, about one-third of Minnesota’s solar energy requirement in 2020 will be met through new solar programmes that receive funding through its Renewable Development Fund.

These programmes include a community solar gardens program, a new Solar Rewards program, and the Made in Minnesota program administered by the Department of Commerce.

CEO Northern States Power Dave Sparby said the solar programmes would enable Xcel Energy to provide its customers with more renewable energy choices at reasonable prices.

"Xcel Energy plans to propose a second round of large-scale solar acquisition in 2017 or 2018 to acquire the necessary solar resources to ensure compliance with the standard by 2020," Sparby added.