Washington, 17 July (Argus) — Xcel Energy plans to add 600MW of wind power from three proposed projects to meet its renewable portfolio standard requirements in Minnesota.
Xcel has signed 20-year power purchase agreements with Geronimo Energy for the 200MW Odell Wind Farm in Minnesota and the 200MW Courtenay Wind Farm in North Dakota, according to a document filed with the Minnesota Public Utilities Commission. It has a development agreement with RES America for the 200MW Pleasant Valley Wind Farm in Minnesota. Xcel would buy and operate that facility after it is built.
Xcel has asked the commission to approve its plans in time for the projects to meet a deadline to start construction by the end of this year in order to qualify for federal production tax credits. All three projects are expected to be completed in 2016.
The contracts resulted from a 200MW competitive solicitation that Xcel issued in February. The company selected the additional 400MW because it wants to secure wind resources before the federal tax credit for wind expires.
The company estimates it will need to add about 1,000MW of wind generation to meet a state requirement to obtain 24pc of its retail sales from wind power by 2020. It already has 200MW from a 20-year power purchase agreement signed in 2010 for the output of the Prairie Rose Wind Farm in Minnesota. Geronimo Energy sold that project to Enel Green Power last year.
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