Xcel decommissioned this Denver coal-fired power unit in 2013. Credit: Will von Dauster, NOAAXcel Energy has announced it will deliver 100% carbon-free electricity to customers — and its goals are backed by science. The utility partnered with the climate scientists at the University of Denver to confirm its vision is consistent with temperature goals of the Paris climate agreement.
Xcel Energy is on a quest to deliver 100% carbon-free electricity by 2050. In 2018, the company reduced carbon emissions 38% from 2005 levels, as it aims to cut carbon emissions 80% by 2030 company-wide. This progress comes as the company adds new wind and solar to its energy portfolio while retiring coal plants and transitioning with cleaner natural gas.
The utility recently released a report, “Building a Carbon-free Future,” detailing its science-backed carbon goals. In it, Xcel Energy tackles the risks associated with climate change. Changing weather patterns, extreme weather conditions and other events, such as flooding, droughts, wildfires and snow or ice storms, can all impact the utility’s system in terms of operability, customer demand, revenues, cost recovery and the health of regional economies.
To combat the changing climate and its implications, Xcel has created a risk management program that creates accountability for managing risk across the company — from employees who are responsible for business compliance and adhering to our Code of Conduct, to senior executives and the board of directors who oversee risk management. The utility’s risk management program states:
In terms of resource planning: Xcel Energy evaluates a range of scenarios and stress test its energy portfolio against important variables, including fuel prices, renewable energy and storage costs, transmission constraints and a variety of others. It uses load forecasts to account for changing weather patterns, a key variable in explaining actual loads and in forecasting future loads. “Load forecast sensitivities can also ensure our portfolio is sufficient to meet different needs created by electrification, which is likely to become more prevalent in a carbon-constrained future,” the report states. “Our resource planning also considers the costs and risks of potential carbon regulation and potential damages from climate change by applying a carbon proxy, allowing regulatory costs, and in some cases, externality damages to be considered in selecting resources.”
In terms of operations: Xcel uses various techniques to maintain a resilient system, from water management to emergency preparedness. For example, its Monitoring and Diagnostics Center watches the operation of major generating units in real time, identifying potential issues before they occur. “We also have predictive analytics and software tools that help avoid plant failures and can even address issues which may result in higher emissions or compromise reliability,” the report states. “Further, we have specific procedures in place to deal with extreme weather, flooding, drought or other conditions that may impact the operability of our plants. To better understand and address climate-related vulnerabilities on our system, we joined the Department of Energy’s Partnership for Energy Sector Climate Resilience to work with others in the industry.”
The 4th Annual Environmental Leader & Energy Manager Conference takes place May 13 – 15, 2019 in Denver. Learn more here.
