Xcel Energy announced an agreement with the Minnesota Department of Commerce, clean energy organisations, labour unions, and energy developers. The public will have an opportunity to provide comments through the Minnesota Public Utilities Commission process, and a final decision is expected in early 2025.
The agreement clears the way for Xcel Energy’s Upper Midwest Energy Plan, under which carbon emissions reductions from 2005 levels are expected to exceed 80% by 2030, potentially reaching up to 88%. It includes new investments in battery energy storage systems, wind and solar power, and a natural-gas fired power plant, while extending the lives of Xcel Energy’s two carbon-free nuclear plants. The agreement includes:
- Adding 3,200 MW of wind energy by 2030, connecting to the Upper Midwest grid at the Sherco plant site in Becker, Minnesota using the proposed Minnesota Energy Connection transmission line.
- Adding 400 MW of solar energy by 2030, connecting to the grid at the A.S. King plant site in Oak Park Heights, Minnesota.
- Adding 600 MW of battery energy storage by 2030, in addition to a 300 MW lithium-ion battery at the Sherco plant site, allowing the company to store low-cost wind and solar energy for when it is needed.
- Extending the use of Xcel Energy’s two carbon-free nuclear plants at Prairie Island and Monticello through the early 2050s.
- Building a hydrogen-capable natural gas-fired power plant in Lyon County, Minnesota, to back up renewables and supply power during critical times while also providing grid stability for the proposed Minnesota Energy Connection transmission line from the Sherco site to Lyon County.
- A commitment to continue development of a thermal heat battery pilot and bring a proposal to the Commission in 2025.
Xcel Energy’s Upper Midwest electric system serves Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
