MINNEAPOLIS (October 19, 2023) – Xcel Energy is issuing one of Minnesota’s largest-ever calls for clean energy projects, accelerating the addition of carbon-free energy for the company’s Upper Midwest customers while helping to replace a coal-fired power plant in central Minnesota.
The company is asking developers to submit proposals for approximately 1,200 megawatts of new wind projects, enough to power 485,000 homes each year on average. The projects will help meet Xcel Energy customers’ energy needs as the company fully retires its remaining coal units, which is expected by the end of 2030. Wind energy does not have any fuel costs and contributes to a diversified energy mix, and tax credits make development more affordable for customers.
“Xcel Energy is a national leader in wind energy, which has saved our Upper Midwest customers $1.6 billion since 2017,” said Chris Clark, president, Xcel Energy-Minnesota, South Dakota and North Dakota. “Wind energy is abundant across the states we serve, and we’re excited to see developers’ proposals that will benefit our customers.”
Xcel Energy is seeking projects located in southwest Minnesota with a planned commercial operation date by the end of 2027. These new wind resources, combined with solar and energy storage projects, will replace the capacity of the coal-fired Sherco plant in Becker. The transition is part of the company’s Upper Midwest Integrated Resource Plan. Approved by the Minnesota Public Utilities Commission in 2022, the plan outlines how Xcel Energy will aggressively reduce carbon emissions.
Xcel Energy has led the clean energy transition for nearly two decades, and the company is on track to reduce carbon emissions 85% from customers’ electricity in the Upper Midwest by 2030. The company shares a vision with the state to deliver 100% clean energy in Minnesota by 2040.
Linking wind energy to the grid
Xcel Energy’s proposed Minnesota Energy Connection transmission line would deliver 2,000 megawatts of renewable energy, including this new wind energy, to the grid at Sherco. The line is under review at the Public Utilities Commission and would run 160-180 miles from Lyon County to Becker. By reusing Sherco’s existing grid connections, Xcel Energy can provide customers with power in the most efficient and cost-effective way.
The Sherco site plays an important role in the Upper Midwest’s clean energy future. In April, the company broke ground on the Upper Midwest’s largest solar project near the plant site. Once complete, the 710-megawatt Sherco Solar project will generate enough electricity to power more than 150,000 homes each year on average and fully replace the first Sherco coal unit, which is scheduled to retire later this year. The company has also received state approval on a long-duration battery storage pilot project at the site.
Flexible request encourages innovation
Xcel Energy’s request allows a range of project sizes and types, including the potential to add energy storage or solar assets at selected wind projects. Click here for more information about the request for proposals.
Renewable energy projects provide economic benefits to the communities where they’re located. They create good-paying construction jobs, plus ongoing operations and maintenance jobs. Wind farms can also generate significant payments to landowners and revenue for local communities.
Xcel Energy is committed to a smooth transition for Sherco plant employees, who have played a vital role in powering the region for decades. The company has transitioned other Minnesota coal plants without layoffs and expects to accomplish this again at the Sherco facility. The company is also working with the state and local communities to bring new jobs and investments to areas impacted by coal plant retirements.
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About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on X, formerly known as Twitter, and Facebook.
