Xcel Energy has submitted a proposal to the Minnesota Public Utilities Commission to build the largest battery energy storage site in the Midwest, located at the Sherco Energy Hub in central Minnesota.
Per the proposal, Xcel plans to double the amount of battery storage adjacent to the Sherco coal plant, which is scheduled to retire by the end of 2030. The Commission had previously approved 300 megawatts (MW) of storage, and Xcel now aims to expand that to 600 MW.
The proposal also includes adding 135.5 MW of battery storage at the company’s Blue Lake facility and expanding its Sherco Solar facility with an additional 200-MW solar array.
If approved, Xcel will move forward with construction in 2026, anticipating completion by late 2027. The projects will use lithium iron phosphate (LFP) battery cell technology, known for its reliability and safety.
“We’re making a significant investment in battery storage because we see it as a critical part of Minnesota’s energy future,” said Bria Shea, president of Xcel Energy-Minnesota, North Dakota and South Dakota, in a statement. “Batteries help us store energy when it’s inexpensive to produce and dispatch it when needed, allowing us to continue delivering reliable electricity to customers while keeping bills low.”
The Sherco battery projects are expected to create more than 150 union construction jobs and an estimated $200 million in combined local tax payments. The Blue Lake project will create approximately 55 construction jobs and $60 million in local tax payments.
The projects are expected to qualify for federal tax credits, which Xcel will pass on to customers in the form of lower energy bills.
The proposal will add a fourth phase to Sherco Solar, bringing the facility’s total generating capacity to 910 MW by 2029.
Read more here.