Colorado’s Energy Future

Balancing Renewable & Fossil Fuels

By Jon Beyer, Chief Executive Officer

Colorado has set an ambitious target: achieving 100% net-0 greenhouse gas emissions by 2050. As your electric cooperative, Sangre de Cristo Electric Association is committed to meeting this goal while ensuring you have reliable, affordable power when you need it most. The path forward requires a thoughtful balance between renewable energy expansion and maintaining dependable baseload sources, such as natural gas plants.

Creating a truly reliable energy grid means considering more than just renewable energy — we must also maintain a certain percentage of baseload resources that enable us to supply you with a reliable source of energy 24/7/365 days a year. In addition to generating assets, we must also factor in transmission infrastructure and the reality that renewable sources don’t always produce critically necessary power 24/7/365 days a year.

Key to our approach to supplying electricity to members when they need it is our partnership with Tri-State Generation and Transmission, SDCEA’s wholesale power supplier. Through this collaboration, we’re building a more resilient energy system that combines the environmental benefits of renewables with the reliability of traditional sources.

Managing Peak Demand & Weather Extremes

Renewable energy sources face an inherent challenge: they don’t always generate electricity when we need it most. Solar panels don’t produce power at night, and wind turbines sit idle during calm weather. Meanwhile, energy demand fluctuates dramatically throughout the day and across seasons.

This is where baseload generation sources play a crucial, and in some cases, ongoing role in ensuring a reliable supply of power. During extreme weather events, high-demand periods, or when renewable output drops unexpectedly, these baseload resources ensure the lights stay on. Having multiple generation sources creates the redundancy necessary for a reliable power grid.

Our current energy mix reflects this reality. While we’re rapidly transitioning toward renewables, maintaining diverse generation sources protects against supply disruptions that could leave communities without power during critical times.

Pooling Resources for Greater Efficiency

Tri-State’s and, by extension, our upcoming participation in the Southwest Power Pool Regional Transmission Organization represents a significant step toward more efficient energy distribution across Colorado and the broader western region. This expanded partnership allows us to leverage resources that would be impossible to develop independently.

SPP integration is expected to create a more interconnected power grid. When 1 area experiences high demand or weather-related outages, other regions can provide power more seamlessly. This regional cooperation strengthens reliability and balances costs among all participating members.

Renewable Energy Goals

Through our Tri-State partnership, we expect to achieve 50% renewable energy usage by the end of 2025, with a target of 70% by the end of 2030. These aggressive timelines would be impossible to meet with our cooperative’s resources alone but become achievable through shared infrastructure and coordinated planning.

Abundant solar and wind resources across Colorado and the broader Southwest provide an ideal foundation for renewable energy development. Our regional approach through Tri-State also improves project development and transmission planning. By coordinating renewable development across multiple service territories, we can locate projects in the most productive areas and build transmission lines that serve multiple communities efficiently.

Preparing For Tomorrow’s Energy Demands

Battery technology represents the next frontier in creating a fully renewable energy system. We’re actively exploring both utility-scale battery installations and residential storage options that could fundamentally change how we manage electricity supply and demand.

Batteries can store excess renewable energy generated during peak production periods and release it when demand spikes or renewable output drops. This technology could, perhaps, reduce our dependency on baseload resources while maintaining grid reliability. Currently, costs for such batteries are high, though technology is expected to improve and potentially lower these costs.

In addition to energy storage technologies, there is a lot of work being done with small modular nuclear reactors. While we may be years away from commercial operation for one of these units, the technology is promising and is perhaps the technology that delivers baseload power with no carbon emissions.

Member Participation & Cost Management

Tri-State has worked diligently to hold its rates steady in the past few years and is now in the process of planning for its future energy supply. The Tri-State Board of Directors recently approved its 2026 budget. The budget included a rate increase for 2026 that will be passed on to SDCEA. The SDCEA Board of Directors will be evaluating this increase and determining the best course of action on how to handle these increased costs.

To help manage electricity use and lessen the impacts of potential bill increases due to rising costs, SDCEA is enhancing its energy efficiency programs to assist members in reducing their electricity usage, offering greater control over monthly bills.

Building Colorado’s Clean Energy Future Together

The transition to net-zero emissions by 2050 represents both a significant challenge and an unprecedented opportunity. Success requires continued collaboration between residents, government representatives, and energy companies working toward shared solutions.

Our partnership with Tri-State provides the resources and expertise needed to navigate this transition while maintaining the reliable, affordable power our communities depend on. By combining renewable energy expansion with strategic baseload resources, improved transmission infrastructure, and innovative member programs, we’re creating an energy system that serves environmental, reliability, and affordability goals.