Xcel to eliminate GHGs from electricity mix

US utility Xcel Energy plans to eliminate greenhouse gas emissions from its electricity system by the middle of the century.

The company today said it will deliver 100pc carbon-free electricity by 2050, while slashing its greenhouse gas emissions 80pc from 2005 levels by 2030, in the eight states it serves. The new goals replace a previous commitment the company made to cut its emissions by 60pc by retiring coal-fired generation and investing in new renewable energy and efficiency projects.

"This is an extraordinary time to work in the energy industry, as we are providing customers more low-cost clean energy than we could have imagined a decade ago," Xcel chief executive Ben Fowke said.

Fowke said the company would likely meet its goals through a mix of new renewable energy resources, energy storage and technologies that may not yet be cost effective or commercially available.

"We are starting this conversation today to make sure we can achieve this groundbreaking transition while continuing to keep energy affordable and reliable for customers," he said.

The company is already moving ahead with plans to retire some of its coal-fired generation in Colorado, while adding about 2GW of renewables there. It also plans to retire coal units in other states including Minnesota and is looking into using nuclear in support of wind and solar.

Xcel says it has already reduced its GHG emissions by about 35pc, down to about 60mn short tons last year.

Renewable energy, mostly wind power, generated about 27pc of the 100mn MWh of electricity Xcel delivered to customers in 2017. That share was projected to increase to 48pc by 2022 in the company's most recent corporate sustainability report, published in May. Nuclear power provides about 13pc of generation in 2017 and is projected to stay there in 2022. Coal made up 37pc of the mix last year, down from 56pc in 2005, and is projected to drop to 27pc in four years.

Clean energy advocates praised the company's announcement

"Xcel's commitment today promises to cut CO2 pollution across a wide swath of the central US. It is a huge step towards a future where we are safe from climate change, have clean air to breathe, and have the economic advantages — and jobs — that the deployment of clean energy will bring," Environmental Defense Fund president Fred Krupp said.

Xcel made the announcement in Denver, joined by Colorado's next governor, Jared Polis (D), who wants the state to transition to 100pc renewable energy by 2040. Polis said the announcement by Xcel, along "strong climate goals" set by a number of the state's cities, "shows we are leading the way forward right here in Colorado."

Colorado accounts for about 33pc of Xcel's retail load.

The state already requires Xcel to use renewables for 30pc of its electricity. Earlier this year current governor John Hickenlooper (D) signed into law a bill directing regulators to set mandates for energy storage.