Wind with batteries? Build it quickly and it could cost $21/MWh in Colorado

Ars Technica 2018-01-19

Enlarge / A couple of wind turbines, part of the Cedar Point Wind Energy Project in Limon, Colorado. (credit: Getty Images)

Proposals for renewable electricity generation in Colorado are coming in cheap, like, $21/MWh-cheap for wind and battery storage. Though there are a few caveats to those numbers, federal incentives and quickly falling costs are combining to make once-quirky renewable projects into major contenders in an industry where fossil fuels have comfortably dominated since the 19th century.

Early last year, Colorado energy provider Xcel Energy requested proposals for new electricity generation. Specifically, the company needed 450 megawatts of additional generation to meet future demand. In a separate request called the Colorado Energy Plan, Xcel said (PDF) it would consider replacing two coal plants providing 660MW of capacity with "hundreds of megawatts of new wind and solar as well as some natural gas-fired resources" if new resources could be found cheaper than what those coal plants cost to operate (including costs to shut down the plants early).

By late November, energy companies had submitted their best offers. Although exact details of the offers aren’t available yet, Xcel Colorado was required to make public a summary of the proposals (PDF) in the month after the bids were submitted.

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