Xcel Energy to buy ALLETE Clean Energy’s 120 MW Minnesota wind site once repowered

In response to a call from regulators for projects that could help the COVID-19 stricken economy and cut costs, ALLETE Clean Energy announced this week that it would repower and expand its Northern Wind Site with new turbines and sell it to Xcel Energy in 2022.

The Northern Wind site is actually two facilities based in southwest Minnesota: the Charanambie and Viking wind projects. Together, their upgraded versions will provide 120 MW of clean energy capacity. While both the sale and redevelopment are still pending regulatory approval, if allowed, they will aid Xcel Energy’s plan to reduce carbon emissions by 80 percent by 2030 and to provide fully carbon-free electricity by 2050.

“Xcel Energy is leading the clean energy transition while also developing projects that will help the economy recover from the COVID-19 pandemic,” Chris Clark, president of Xcel Energy-Minnesota, North Dakota, and South Dakota, said. “Repowering older wind sites with new technology will save customers money, create more renewable energy, reduce carbon emissions, and move us closer to achieving our vision to deliver 100% carbon-free electricity to our customers.”

The news follows the completion of another ALLETE refurbishment project at the nearby Lake Benton I wind site, which also sells energy to Xcel Energy under a long-term power purchase agreement. Many facilities like these were built in the 1990s and early 2000s. Technology has advanced significantly since then, allowing turbines to capture more energy at the same speeds — providing more for less cost. ALLETE estimates replacing wind turbines can increase electricity production by more than 10 percent.

“We’re proud to provide this valuable clean-energy solution for Xcel Energy and its customers,” ALLETE Clean Energy President Allan Rudeck Jr. said. “This project is the latest example of our strategy in action to advance sustainable energy solutions while investing in local communities. It is a four-part winner that will deliver more clean energy to decarbonize the nation’s energy supply, contribute to more affordable electric rates for customers, and spur local employment and economic activity, all while providing an opportunity to reallocate capital into exciting, new, and complementary clean energy growth opportunities.”

The Northern Wind project is now being submitted to the Minnesota Public Utilities Commission as part of a package of renewable energy projects.