Seventeen generation projects that would produce over 4,700 megawatts, store 1,470 megawatts, and invest more than $6 billion are planned for rural Colorado by 2028.

For context, 4,700 MW could power approximately 3.76 million households at any given moment. Currently, projected in-service dates range from 2026 to 2028 with a mix of 6 wind, 3 solar, 5 storage, and 3 solar + storage projects. Several projects will require a CPCN in 2025 including several in the first quarter of the year.

We will keep this site updated with the latest information on these projects impacting rural Colorado. For now, here is a little more background about the process for public approvals.

A CPCN, or Certificate of Public Convenience and Necessity, is a legal authorization issued by a regulatory authority that allows a company or entity to operate as a public utility or provide certain regulated services. It is commonly required in industries like energy, telecommunications, and transportation, and ensures that the entity is meeting the public's needs while adhering to regulations.

More About a CPCN:

1. Examples of Use:
   • A company seeking to build a new power plant.
   • A telecommunications provider wanting to expand broadband services to a new area.
   • A transportation company applying to operate a new bus or rail route.
2. Purpose:
   • To ensure that the proposed service is necessary for the public and serves the public interest in industries such as utilities, telecommunications, and transportation.
   • To prevent unnecessary duplication of services or infrastructure in the same area.
3. Regulatory Body:
   • The authority issuing the CPCN varies by jurisdiction and in this case, it is the Colorado Public Utilities Commission that issues the CPCNs.
4. Application Process:
   • The applicant must typically demonstrate that the service is necessary and beneficial for the public.
     1. For the generation projects noted above, the Commission has already found these projects to be necessary and beneficial for the public. The CPCN application process is a follow-on step where the Commission reviews and approves current cost estimates and construction schedules for regulated utility owned projects.
   • Case information is made available through the Commission’s website and may include public hearings. Residential, small commercial, and agricultural customers are represented by the Utility Consumer Advocate. The Commission’s Trial Staff division also represents the general public interest.

Large-scale solar farms, wind farms, and energy storage projects can bring positive economic impacts to rural Colorado economies including new jobs and investment, increased local tax revenues, and lower energy costs. Here are more details on some key benefits:

• Job Creation
  • During construction these projects require a significant workforce to install and build the solar, wind, and storage facilities. This includes electricians, engineers, construction workers, and other skilled labor.
  • Once operational, the ongoing maintenance, monitoring, and management creates long-term job opportunities as well.
  • The production of solar panels, inverters, turbines, batteries, and related components stimulates job growth in manufacturing industries.

• Energy Cost Reduction
  • Large-scale renewable energy can generate electricity at a lower cost compared to conventional fossil fuel sources which can lead to reduced electricity prices for consumers and businesses.
  • Harnessing domestic energy resources reduces our reliance on imported fuels like coal, oil, and natural gas, stabilizing energy costs.

• Investment and Economic Growth
  • Large renewable energy projects attract significant private investment, contributing to economic growth. Investments come from public and private sectors, including venture capitalists, utilities, and renewable energy companies.
  • The development of solar farms, wind farms, and storage facilities in rural areas can provide a financial boost to local communities through increased economic activity. This includes spending on local services, accommodation, and supplies during construction phases.

• Increased Tax Revenues
  • Solar, wind, and energy storage projects generate new property tax revenues for local governments.
  • Sales taxes from the purchase of equipment and services also contribute local public dollars.

• Landowner Income
  • Landowners who lease their land for projects receive regular payments, providing a new and stable source of income, especially in rural areas where agricultural income may be volatile.
  • Wind and solar projects can coexist with grazing livestock and existing farmland creating opportunities for ranchers and farmers to maintain traditional operations while benefiting from renewable energy revenue streams.

• Energy Independence and Security
  • Solar, wind, and energy storage helps diversify the energy mix - reducing vulnerability to price shocks in the global oil and gas markets.
  • Rural Colorado can eventually become an energy exporter, potentially earning revenue through the sale of surplus energy to neighboring regions or states.

• Environmental Benefits Leading to Economic Savings
  • By replacing fossil fuels, renewable energy reduces pollution-related health issues, potentially lowering healthcare costs. A cleaner environment often leads to a healthier workforce and fewer economic losses due to illness.
  • Renewable energy projects help reduce greenhouse gas emissions, which can mitigate the long-term economic impacts of climate change, such as natural disaster damages and agricultural losses.

• Technology Innovation and Industrial Growth
• The development of these large-scale renewable energy projects encourages innovation in energy storage, grid management, and energy efficiency technologies. This can lead to growth in other sectors, such as battery manufacturing and smart grid technologies.
• The success of these projects often stimulates further investments in renewable energy, helping to grow the entire clean energy industry and create opportunities in related sectors like research, development, and manufacturing
• Water Use
• Unlike fossil fuel plants, solar and wind require minimal water, making them advantageous in rural Colorado areas where water is often a scarce resource.

Overall, large-scale solar energy projects have the potential to stimulate significant economic growth, create jobs, reduce energy costs, increase local government revenues, and contribute to long-term sustainability.

Wind farms, solar farms, and energy storage generally have a positive long-term impact on reducing local utility costs due to their low operational costs and ability to displace more expensive forms of energy generation. However, initial costs and the need for grid updates may cause short-term increases in utility prices depending on several factors including the scale of the projects, local energy market conditions, government policies, and the integration of these renewable sources into the grid. Here's more about their impacts:

Wind Farms

• Cost Reduction Potential: Wind energy, once installed, has very low operational costs, as the "fuel" (wind) is free. This can result in lower utility costs over time as wind power displaces more expensive fossil fuel generation.
• Initial Costs: There may be initial costs associated with building the infrastructure to support wind farms, which could be passed on to consumers in the form of rate increases in the short term.
• Wholesale Energy Price Impact: Wind farms can drive down wholesale electricity prices during high wind periods, as they often bid into energy markets at low or negative prices to ensure they are dispatched. This can lead to savings for utilities, which may translate into lower consumer prices.

Solar Farms

• Lower Long-term Utility Costs: Like wind farms, solar farms benefit from free fuel (sunlight), leading to predictable, low operational costs once the infrastructure is in place. As the proportion of solar energy in the grid grows, it can contribute to more stable and potentially lower electricity rates.
• Peak Demand Reduction: Solar farms often generate electricity during peak demand hours (sunny days), which can help reduce the need for expensive peaking power plants, potentially lowering utility costs during peak times.
• Transmission and Grid Integration Costs: If large solar farms are located far from population centers, there may be additional transmission costs that could impact utility prices. However, these can sometimes be offset by the savings solar energy provides.
• Incentives and Subsidies: Government subsidies and incentives for solar energy can help reduce the cost of building these facilities, potentially benefiting consumers with lower utility costs. However, in some cases, subsidies are funded through ratepayer contributions, which could increase rates in the short term.

Energy Storage

• Grid Stability and Lower Peak Prices: Energy storage systems (such as battery farms) help balance supply and demand by storing energy when it's abundant and releasing it when it's scarce. This can reduce the need for expensive peaking plants and can lower the overall cost of energy during high-demand periods and smooth price volatility.
• Capacity and Ancillary Services: Energy storage provides additional grid services, such as frequency regulation and reserve capacity, which help avoid costs associated with grid instability and blackouts. These avoided costs can benefit consumers indirectly by preventing large spikes in utility rates.
• Initial Investment: The cost of deploying energy storage can be high, and some of these costs might be passed on to consumers initially. However, as technology improves and costs decline, the long-term impact could be more favorable to ratepayers.

Overall Impact on Utility Costs

• Short-term vs. Long-term: In the short term, the costs of building new renewable energy projects may lead to slight increases in utility rates. However, over the long term, the low operational costs of wind and solar, combined with energy storage’s ability to optimize grid usage, are likely to reduce utility costs.
• Market Dynamics: In competitive energy markets, wind, solar, and storage can drive down the wholesale price of electricity, which should eventually translate into lower retail electricity prices. In regulated markets, utility commissions may pass savings from renewables to consumers, depending on rate structures.
• Location-specific Factors: The impact on utility costs can be heavily influenced by local policies, the structure of the energy market (regulated vs. deregulated), and existing energy infrastructure.