SHAKOPEE, Minn. (Oct. 27, 2026) -- Xcel Energy advanced its battery storage strategy Monday with the arrival of battery units at its Blue Lake site, a significant construction achievement that supports the company's efforts to build a more flexible, resilient energy system for customers across Minnesota.
The Blue Lake project is part of a broader plan to diversify the resources that power Minnesota while maintaining the reliable service customers depend on and keeping bills as low as possible. Together with two planned projects in Becker, Minnesota, Xcel Energy expects to operate more than 735 megawatts of battery energy storage in Minnesota by the end of 2027, creating the largest battery portfolio in the Upper Midwest.
"For more than a century, energy companies have generated electricity when customers need it and delivered it almost immediately. Battery storage changes what's possible. It allows us to store energy and dispatch it when it's needed most, giving us a powerful new tool to maintain reliability, support growing energy needs and make the most of the diverse resources that power our system," said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota.
Battery storage helps strengthen grid reliability by storing energy when it is available and dispatching it back to the grid when customer demand is higher. The evolution of energy storage systems over the years means they can be deployed more broadly at existing energy sites such as Blue Lake, allowing Xcel Energy to leverage existing infrastructure while integrating new technologies.
The Blue Lake batteries will store energy generated across Xcel Energy's Upper Midwest system, including energy from wind, solar, nuclear and natural gas resources. The 135.5-megawatt battery energy storage facility will include 132 battery units capable of storing energy and delivering electricity for up to four hours, enough energy to power approximately 125,000 homes when demand is highest.
"The Blue Lake project demonstrates how battery storage is becoming an increasingly important part of grid operations," said Justin Meagher, Xcel Energy battery storage project manager. "These systems can respond quickly to changing conditions, store energy when it's available and provide electricity when customer demand is high. That flexibility helps us operate the electric system more efficiently while continuing to deliver reliable service to customers."
The Blue Lake Battery Energy Storage System is expected to begin serving customers in 2027.
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About Xcel Energy
Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.
Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas. For more information, visit xcelenergy.com or follow us on X and Facebook.
