Xcel Energy plans major solar expansion in Midwest, with new arrays, solar purchases and retiring coal operations

By 2028, Xcel Energy plans to nearly triple the amount of solar on its Upper Midwest system, through the addition of a new solar array in Becker, Minn., replacement of the Sherco plant site’s first coal unit and the purchasing of additional solar power from northwest Wisconsin.

Sherco, likewise based in Becker, Minnesota, will have its first coal unit retired later this year. That capacity will be replaced by three solar projects currently expected to complete construction by the end of 2025, bringing with them 460 MW of renewable energy. Xcel Energy last week asked the Minnesota Public Utilities Commission (PUC) to allow another 250 MW solar project thereabouts. Even before the 250 MW addition, this was the largest solar project in the Upper Midwest.

“These projects will be the lowest-cost solar on our Upper Midwest system and demonstrate our focus on clean energy without compromising affordability,” Chris Clark, president, Xcel Energy – Minnesota, South Dakota and North Dakota, said. “We are committed to moving the Sherco Solar project forward to deliver significant new clean energy to our customers and communities.”

Combined with another 100 MW sought for purchase under a 20 year contract with the Apple River solar project – under development in northwest Wisconsin – Xcel Energy would bring in about 710 MW of capacity over the coming years. Given that the initiative is solar-driven, that means these additions would also come without fuel costs, aiding against fuel price fluctuations. Further, the company stated that it expects to qualify for federal tax credits to make its construction efforts more affordable for its customers.

Work on the first of the Sherco projects began this April, and like that case, Xcel’s proposed third solar array in the area would be developed, owned and operated by the company itself. All three projects will supposedly help Xcel to reduce its carbon emissions 85 percent from customers’ electricity in the Upper Midwest by 2030, and will support plans to retire all its existing coal units by the end of that same year.