Xcel Energy is to start construction of its 522MW Sagamore wind power project in eastern New Mexico in the fourth quarter, the final and largest piece of a 1.23GW expansion in the southwestern US state and neighouring northern Texas Panhandle region.

Vestas will supply 240 turbines for the $900m project, set to generate electricity for almost 200,000 homes, according to the Minneapolis-based developer, which is running neck-and-neck with Berkshire Hathaway Energy for having the most wind power on its system among US utilities.