Xcel Energy, a US based electricity and natural gas company, has entered into an agreement with an affiliate of Cielo Wind Power to purchase the output of the planned 161MW Spinning Spur Wind Ranch to be built west of Amarillo in the Texas Panhandle.

The company will purchase the electricity and receive the renewable energy credits generated by production at the wind farm for 15 years.

The power project will be sited west of Vega in Oldham County, north of Interstate 40 and west of US Highway 385 adjacent to the existing Wildorado Wind Ranch.

The facility is expected to generate 650,000MWh of electricity annually, which is enough to power more than 54,000 households per year.

Construction of the wind farm is expected to start by July next year.