Xcel Energy announced plans to initiate construction of the 522-MW Sagamore wind farm in New Mexico in the last quarter of the year, targeting completion in late 2020.

Once fully operational, the $900 million facility will be the largest of its kind in New Mexico, and able to generate enough electricity to supply 194,000 typical households each year.

“Sagamore will pay for itself in the fuel cost-savings it will generate by using one of the region’s most abundant resources – the wind – to drive its generators,” said David Hudson, president of Xcel Energy for New Mexico and Texas. “It will be among the cheapest generating resources on our system and will help us conserve precious groundwater and protect the environment while bringing an immense economic benefit to eastern New Mexico.”

The new wind farm will be located in New Mexico’s Roosevelt County and use 240 Vestas’ wind turbines. Wanzek Construction will be in charge of construction.

The development phase of the project has already been finalized, according to Xcel, including grid connection studies. The construction stage is expected to provide employment to about 400 people.

The Sagamore project was initially developed by Chicago-based Invenergy LLC. Xcel became its owner in 2017 as part of a plan to expand its wind portfolio within its New Mexico-Texas system by 1,230 MW.

Xcel has committed to an 80% reduction in carbon emissions by 2030 and aims to provide 100% carbon-free electricity by 2050. With the addition of Hale and Sagamore, Xcel expects nearly half of its New Mexico and Texas electricity supply to be derived from renewable electricity, primarily wind energy, by 2023.