In a major step toward strengthening grid energy reliability across its Southwest service territory, Xcel Energy has purchased 10 large gas turbines and associated generation equipment from Siemens Energy to support construction of two power plants. The investment comes as electric demand surges across the region, driven by evolving energy needs and the planned retirement of Xcel Energy’s Tolk Station.
The new facilities will add 2,088 megawatts of dispatchable generation capacity, ensuring flexible, on-demand power during peak usage and volatile market conditions.
“As demand for reliable energy grows, dispatchable power is no longer optional,” said Luke Baker, Head of Gas Services Sales, North America, at Siemens Energy. “Our turbine technology ensures availability and flexibility in a region critical to America’s energy future.”
At Tolk Station in Muleshoe, Texas, Xcel Energy will retire its coal plant and install five Siemens Energy SGT6-5000F gas turbines and five SGen6-1000A generators, delivering 928 megawatts of backup energy to support grid stability.
In Gaines County, a new peaker plant will be built to rapidly generate electricity during high demand periods. It will feature five additional F-class turbines and five generators, adding 1,160 megawatts of fully dispatchable capacity.
“These power plant projects are part of a broader portfolio that includes 17 new power initiatives and more than 5,000 megawatts of added capacity by 2030,” said Adrian J. Rodriguez, president, Xcel Energy – Texas, New Mexico. “We are committed to thoughtfully investing in a balanced mix of energy resources that deliver reliable service to our customers and support long-term economic growth across the region. This approach ensures we can meet today’s energy needs with confidence and deliver lasting value, while preparing for the evolving expectations of tomorrow’s customers and communities.”
The first turbine deliveries are scheduled for early 2026, with anticipated commercial operation dates aligned to meet Southwest Power Pool’s increased regional planning reserve margin requirements.
Siemens Energy’s SGT6-5000F gas turbine is designed for fast start-up and quick load changes, with world-class emissions performance and exceptional operating efficiency – making it ideal for peak, intermediate or baseload applications.
