US-based Xcel Energy has secured approval from Minnesota utility regulators, for its plan to add four Upper Midwest wind farms in the area.
The new farms are expected to increase the wind power capacity in the region by around 42%, reports startribune.com.
The approval will help the company, along with other two energy development firms, which include Geronimo Energy, to clear the way to receive lucrative federal tax credits.
Geronimo will develop Courtenay Wind Farm near Jamestown of North Dakota, and Odell Wind farm near Windom of Minnesota, and will sell power to Xcel, as part its long-term contract.
Xcel will own remaining wind farms, which include Pleasant Valley, near Austin of Minnesota, and Border Winds Project in Rolette county of North Dakota, while both the projects will be developed by RES America Developments and be sold to Xcel.
The wind farms are expected to generate enough power for around 200,000 homes and reduce carbon emissions by about 1.5 million tons a year, while the company plans to bring online additional 750 megawatts of power by 2015.
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By GlobalDataThe projects are expected to save around $225m for ratepayers, when they go live.
Xcel Energy regional CEO Dave Sparby was quoted by the news agency as saying that "wind energy is a clean, low-cost substitute for natural gas and other fuels right now."
