Xcel Energy is collaborating with Sparkfund for a first-of-its-kind proposal to build a battery storage network across Minnesota that will bolster the grid and help the utility meet increasing electricity demand.
The Capacity*Connect proposal will have Xcel Energy install up to 200 megawatts of battery storage at strategic locations by 2028. The distributed energy resources will help customers maintain reliable service, maximize the efficiency of existing infrastructure, and support the local workforce.
Xcel will utilize its integrated system planning processes to strategically site the new battery storage resources. It will integrate the battery storage into its system operations, charging the batteries when energy is inexpensive and dispatching that energy to serve its customers during peak demand periods.
Each site will have approximately one to three megawatts of storage. Xcel plans to install the batteries at local businesses, commercial or industrial sites, or nonprofit organizations to provide more customers with the opportunity to benefit financially from hosting clean energy technologies. Hosts will receive direct payments for participating in the program.
“We’re focused on supporting economic growth and the needs of our communities by building out and modernizing our energy grid,” said Ryan Long, president of Xcel Energy-Minnesota, North Dakota and South Dakota, in a statement. “We believe distributed energy resources are an important part of that strategy. They will complement our current plans for additional renewable and firm dispatchable generating resources to meet our customers’ needs.”
Xcel Energy and Sparkfund will monitor performance, costs, and customer experience as the program grows to ensure the endeavor is cost-effective while supporting a clean, reliable grid.
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