Xcel Energy and GE Vernova Enter Strategic Alliance to Strengthen the Energy System of the Future
Xcel Energy and GE Vernova have formalized a major new phase in their long-standing relationship with the signing of a Strategic Alliance Agreement (SAA) aimed at supporting the evolution of the U.S. power system over the coming decades. The agreement reinforces both companies’ shared commitment to delivering reliable, affordable, and increasingly sustainable energy while responding to rising electricity demand, grid complexity, and decarbonization goals.
Under the terms of the alliance, GE Vernova will support Xcel Energy’s generation and grid modernization initiatives well into the 2030s, providing access to a broad portfolio of power generation equipment, renewable technologies, and grid solutions. The partnership is structured to give Xcel Energy greater certainty around equipment supply, operational flexibility, and long-term cost management—key factors as utilities navigate unprecedented growth in load from electrification, data centers, and industrial expansion.
Supporting a Rapidly Evolving Energy Landscape
Electric utilities across the United States are facing a historic inflection point. Demand for electricity is accelerating as transportation, heating, and industrial processes increasingly electrify. At the same time, utilities must maintain reliability while transitioning to cleaner generation resources and modernizing aging grid infrastructure. Xcel Energy’s alliance with GE Vernova is designed to address these challenges through coordinated planning, technology alignment, and long-term collaboration.
The agreement takes a comprehensive view of energy infrastructure, encompassing both the development of new generation capacity and upgrades to existing assets. Rather than focusing on a single technology or project, the alliance enables a multi-year, multi-technology approach that can adapt as market conditions, policy frameworks, and customer needs evolve.
Gas and Wind at the Core of the Initial Commitments
As an initial step under the Strategic Alliance Agreement, Xcel Energy has executed a Reservation Agreement to secure five F-class gas turbines from GE Vernova. These advanced turbines will play a critical role in supporting grid reliability, providing flexible, dispatchable power that can respond quickly to fluctuations in demand and variability from renewable energy sources.
In parallel, Xcel Energy is advancing its renewable energy strategy by integrating GE Vernova technology into its wind development pipeline. The utility has completed a Capacity Reservation Agreement covering multiple gigawatts of wind generation using GE Vernova’s proven wind turbine platforms. These projects will help Xcel Energy continue expanding its renewable portfolio while ensuring access to dependable, domestically manufactured equipment.
Importantly, both the gas turbines and wind turbines covered under the agreement will be produced at GE Vernova manufacturing facilities in the United States. This domestic production supports supply chain resilience, shortens delivery timelines, and aligns with broader efforts to strengthen U.S.-based energy manufacturing.
A Holistic Approach to Grid and Generation
Beyond new power plants, the alliance emphasizes modernization and optimization of the existing grid. Xcel Energy and GE Vernova are collaborating on grid equipment initiatives, including systems designed to enhance stability, resilience, and power quality. Among these efforts are opportunities related to synchronous condenser technology, which supports voltage regulation and grid inertia—capabilities that become increasingly important as renewable penetration grows.
The companies are also building on a critical grid systems order expected in 2025, underscoring the alliance’s near-term impact while laying the foundation for long-term infrastructure upgrades. By coordinating equipment planning and deployment across generation and transmission assets, the partnership aims to reduce project risk and improve system performance.
Innovation, Digitalization, and Joint R&D
A defining feature of the Strategic Alliance Agreement is its emphasis on innovation and forward-looking collaboration. Xcel Energy and GE Vernova plan to work together in areas such as artificial intelligence, advanced analytics, and digital grid solutions to improve asset performance, predictive maintenance, and system optimization.
The alliance also opens the door to joint research and development initiatives, allowing both companies to pilot next-generation technologies and explore new operational models. This collaborative approach is intended to accelerate the adoption of emerging solutions while ensuring they are practical, scalable, and aligned with real-world utility needs.
By aligning technology roadmaps and sharing expertise, Xcel Energy and GE Vernova aim to stay ahead of rapid changes in the energy sector, from evolving regulatory requirements to new customer expectations around reliability and sustainability.
Leadership Perspectives on the Partnership
Xcel Energy Chairman, President, and CEO Bob Frenzel emphasized the strategic importance of working with partners that can deliver at scale during a pivotal moment for the industry. He noted that the alliance supports Xcel Energy’s sustainability goals and grid modernization efforts while enabling the company to meet growing demand across the communities it serves.
According to Frenzel, the partnership allows Xcel Energy to move quickly and confidently, ensuring that customers continue to receive safe, reliable, and affordable power as the energy system transforms. By collaborating closely with GE Vernova, Xcel Energy can deploy advanced technologies efficiently while managing costs and operational risks.
GE Vernova CEO Scott Strazik echoed these sentiments, highlighting Xcel Energy’s leadership role in the power sector. He said the agreement deepens an already strong relationship and creates opportunities for more strategic alignment between the two companies. Strazik emphasized that combining GE Vernova’s technology portfolio and service capabilities with Xcel Energy’s long-term vision positions both organizations to deliver reliable electricity for decades to come.
Clarifying the Scope of the Agreement
GE Vernova noted that the five F-class gas turbines reserved under the agreement are not included in the company’s previously disclosed total of 83 gigawatts of contracted gas turbines announced during its January 28, 2026 quarterly earnings release. This distinction underscores that the alliance represents additional future commitments rather than previously reported backlog.
Building the Energy System of Tomorrow
Ultimately, the Strategic Alliance Agreement reflects a broader shift in how utilities and technology providers work together. As the energy transition accelerates, long-term partnerships are becoming essential to managing complexity, ensuring supply chain stability, and delivering reliable outcomes at scale.
By combining flexible gas generation, large-scale renewable development, grid modernization, and innovation-driven collaboration, Xcel Energy and GE Vernova are positioning themselves to address today’s challenges while preparing for tomorrow’s energy needs. The alliance signals a shared belief that the future power system must be resilient, adaptable, and capable of supporting economic growth—while continuing progress toward a lower-carbon energy mix.
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