Xcel Energy announced that it will build and own a 300MW wind farm in South Dakota, dubbed Dakota Range I and II project, as part of its wind expansion strategy.
The Dakota Range wind farm is claimed to be the first publicly announced wind project to move forward under the phase down of federal tax credits.
The cost of the wind project, without full tax credit, is low enough to compete against other fuel sources, the company says.
Xcel Energy chairman, president and CEO Ben Fowke said: “This is a milestone for our industry and our customers.
“Wind provides the clean, competitively priced energy our customers want. This project proves we can keep driving the clean energy transition of our supply mix while keeping customer bills low, even as incentives phase out.”
The wind farm will be developed by Virginia-based Apex Clean Energy. It is slated to become operational in 2021, subject to regulatory approval.
Apex Clean Energy president and CEO Mark Goodwin said: “Partnering with utilities is one of the principal ways Apex is achieving its mission to accelerate the shift to clean energy.
“Dakota Range Wind is an ideal fit for the Xcel Energy generation portfolio. Together, we will provide new local jobs and a significant source of long-term revenue for Grant and Codington counties, helping drive the South Dakota economy forward.”
The new project is expected to expand the Minnesota-based electric utility’s existing wind proposals to 3,680MW at 13 wind farms in seven US states.