Xcel Energy Inc. (XEL) announced its intention to take over the proposed 150 megawatt (MW) wind park located in the north-central region of North Dakota. The company is currently seeking approval from the state regulators for the Border Winds project.
Xcel Energy has not disclosed any estimated costs for this project. The wind program was previously planned by Sequoia Energy in 2005 and a site plan was sanctioned by the regulators in 2011. The project was expected to be concluded by 2012.
However, Sequoia Energy failed to start any construction work during the period. Xcel Energy jumped on the opportunity to add the wind asset as the project permit is valid for four years and has the provision of asset transfer to another company.
Xcel Energy will team up with RES America Development Inc., a business wing of Renewable Energy Systems Americas Inc. (RES Americas), for the development of the project. RES Americas will supervise the construction phase and will return the ownership to Xcel Energy once it is completed.
The wind park located in Roulette County includes 66 turbines spread over 50 square miles of land and shares its border with Manitoba. Construction tasks are expected to commence next year with a projected conclusion slated for 2016.
Last month, Xcel Energy joined forces with RES Americas to develop a 200 MW wind facility close to Austin, Minn. It also applied for approval for two other projects to the Minnesota Public Utilities Commission and the North Dakota Public Service Commission.
The Border Winds project will increase North Dakota’s total wind capacity by 9% to 6,200 MW. The state already has about 20 wind farms in the pipeline for development. Xcel Energy has been generously adding wind assets which will help the company to reach its 30% renewable capacity goal in the long term.
The clean and cost saving nature is what drove Xcel Energy to expand its wind portfolio. These steps look well timed especially with the benefits of production tax credits getting an extended term.
Furthermore, electricity generation from renewable energy is projected to rise to 16% by 2040, as per Energy Information Administration’s prediction. Although coal and natural gas will offer stiff competition owing to their abundance, renewable energy will catch up steadily. Xcel Energy with its renewable focus is likely to gain from this positive dynamics.
The company currently carries a Zacks Rank #3 (Hold). Meanwhile other utility stocks looking up in the market are Zacks Ranked #2 (Buy) UNS Energy Corp. (UNS), PNM Resources Inc. (PNM) and NiSource Inc. (NI).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment