Electricity and natural gas company Xcel Energy Inc. (XEL) has decided to discontinue its 150 megawatt (MW) Merricourt wind farm project in southeastern North Dakota as it could endanger certain species of birds. The project was scheduled to come in to operation by the end of 2011.
The termination of the wind farm project in North Dakota follows Xcel Energy’s hunch that it could have adverse environmental implications. The company also cited uncertainties regarding the time of completion and associated costs to make the project environmentally viable.
This $400 million, 150 MW wind farm project was to be jointly developed by Xcel Energy and EnXco Inc. The latter is the U.S. project development unit of Paris-based EDF Energies Nouvelles SA.
Xcel Energy and EnXco Inc. are working together on the development of wind farms projects. The most recent one was 201 MW Nobles Wind Energy Project in Minnesota, which provided green power to 66,500 homes.
Xcel Energy is consistently working to develop a portfolio of renewable energy projects. In 2010, the company had 3,432 megawatt (MW) of wind energy in its portfolio, reflecting a growth of 8.1% from 3,176 MW recorded in 2009.
In the days to come, Xcel Energy plans to produce more energy from wind power. The wind generation capacity is expected to grow between 4,500 MW and 5,000 MW by 2015 from the present level. By 2020, wind energy will likely account for 8% of the total energy produced.
We appreciate the systematic approach of Xcel Energy to grow its renewable energy portfolio, keeping in mind the environmental impact of such projects.
Xcel Energy currently retains a Zacks #4 Rank (short-term Sell rating). The company competes with American Electric Power Co. (AEP).
Based in Minneapolis, Minnesota, Xcel Energy is a U.S. electricity and natural gas company, with operations in eight Western and Midwestern states.
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