Back to top

Xcel Energy Buys Wind Project From NextEra, Expands in Texas

Read MoreHide Full Article

Xcel Energy (XEL - Free Report) purchased a wind project named Hale Wind Project in Texas from NextEra Energy Resources — a subsidiary of NextEra Energy (NEE - Free Report) . The construction of the 478-megawatt (MW) wind project will need nearly $735 million. Meanwhile, the terms of the deal have not been disclosed.

Construction work is expected to start this month, subject to approval from regulators of Texas and New Mexico.
2 Wind Farms in Texas-New Mexico Border

Xcel Energy has been advocating the use of renewable energy in electricity generation. The company plans to add 3,700 MW of wind power projects within the 2017-2021 period by adding 12 new wind farms in seven states.

Development of wind projects in the Texas-New Mexico area is under the total wind expansion plan. The company received the required approval from the commission to build wind farms in these regions with a capacity of 1,230 MW.  In addition to the 478 MW Hale Wind project in Texas and 522 MW Sagamore Wind project in Roosevelt County, New Mexico, the company intends to purchase power from the 230-MW Bonita wind project that is developed by NextEra Energy Resources.

Long-Term Plans

Xcel Energy generates electricity through coal, natural gas, nuclear, other renewable, solar and wind energy sources. The company is planning to lower emission and is on track to reduce carbon emissions by 60% from 2005 levels by 2030.

Renewable Energy Replacing Fossil Fuel

Over the last few years, dependency on fossil fuel, particularly coal, is gradually declining. The need for an emission-less environment is pushing the industry toward renewable energy. Coal is the primary source of greenhouse gas emissions and thus Utilities are shifting to renewables and other clean sources to generate electricity.

Other electric utilities like NRG Energy Inc (NRG - Free Report) and Dominion Energy Inc. (D - Free Report) are also focusing on cleaner sources to produce electricity.

Price Movement

In the past 12 months, shares of Xcel Energy have gained 2.3% compared with its industry’s gain of 0.3%.

Zacks Rank

Xcel Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will You Make a Fortune on the Shift to Electric Cars?

 Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Xcel Energy Inc. (XEL) - free report >>

NextEra Energy, Inc. (NEE) - free report >>

Dominion Energy Inc. (D) - free report >>

NRG Energy, Inc. (NRG) - free report >>

More from Zacks Analyst Blog

You May Like

Published in