The American energy company Xcel Energy Inc. has entered into an agreement with Siemens Energy AG to purchase gas turbines to power two power plants in West Texas. This is reported in a press release from Xcel Energy.
Siemens Energy plans to deliver the first turbine in early 2026. The new power plants will power the central U.S. power grid under the management of Southwest Power Pool, which serves more than 18 million customers in 14 states. At the same time, Siemens Energy, GE Vernova Inc. and Mitsubishi Heavy Industries Ltd. They are the key manufacturers of large gas turbines in the world.
Xcel plans to install five gas turbines at a 1,200 MW power plant in Gaines County, Texas. An additional five turbines will provide electricity to a 930 MW plant to replace the coal-fired power plant that Xcel plans to close in Bailey County.
Gas turbines are currently one of the most sought-after types of equipment in the energy markets amid a sharp increase in electricity demand, which has led to a global shortage of gas turbines. Natural gas is the preferred fossil fuel because it can be used around the clock and is easier to produce than nuclear fuel.
The state of Texas is facing unprecedented demand for electricity for data centers, oil production, and the state's economic growth given its outdated infrastructure. Currently, the demand for AI is increasing the load, forcing companies to quickly modernize their networks in order to maintain reliable power supply and accessibility for consumers.
Xcel Energy Inc. is an American energy company in the field of electricity and natural gas supplies in eight states. The headquarters is located in Minneapolis, Minnesota.
Siemens Energy is a German company manufacturing equipment for the energy industry. The company was founded as part of the separation from the Siemens energy division into an independent company. The headquarters is located in Munich (Germany).
