The Minnesota Public Utilities Commission (PUC) has approved Phase 2 of Xcel Energy’s Capacity*Connect project.
The program will deploy a network of community-based battery energy storage systems (BESS), which will serve as a first-of-its-kind, utility-owned virtual power plant (VPP). It is designed to provide enhanced grid reliability and direct economic benefits to surrounding regions.
The project will deploy up to 200 megawatts (MW) of energy storage to the grid by 2028. The VPP will be comprised of medium-sized batteries at about 1-3 MW each.
“Capacity*Connect represents a vital step toward modernizing the energy grid and meeting the growing electricity needs of our communities,” said Commissioner Ham, in a statement. “By leveraging innovative battery technology and Virtual Power Plant models, we are not only ensuring a more reliable and resilient system for all Minnesotans but also creating a more equitable energy future that delivers real value back to the communities.”
The Commission has instructed Xcel to prioritize siting energy assets in underserved communities as well as partner with Building Strong Communities to provide locals access to construction jobs.
The Commission has also tasked Xcel with reporting on whether learnings from its behind-the-meter VPP pilot project in Colorado could be applicable in Minnesota and thereby assist in the state’s approach.
Xcel is required to complete regular status reports and comprehensive evaluations of its programs via a third party for the purpose of ensuring they deliver maximum value to ratepayers while advancing state clean energy goals.
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