Minnesota PUC approves Xcel Energy expansion of Sherco Solar with third array
Building on an effort to triple its solar offerings by 2028, Xcel Energy said the Minnesota Public Utilities Commission approved expansion efforts for Sherco Solar, allowing a 250 megawatt (MW) third array to be added to the site.
“We thank the Commission, Minnesota Department of Commerce and labor partners for their support of our solar portfolio,” Chris Clark, president of Xcel Energy – Minnesota, South Dakota, and North Dakota, said on Sept. 21. “Sherco Solar will provide the lowest-cost solar on our Upper Midwest system, and these projects demonstrate our focus on clean energy without compromising affordability.”
Already slated to become one of the largest solar sites in the United States, Sherco will now be a 710 MW site in all, replacing the capacity of its first coal unit. That unit is scheduled to retire later this year, and its solar replacements should be in operation by the end of 2025. It’s also expected to qualify for federal tax credits under the Inflation Reduction Act, likely providing further savings for customers.
At capacity, the more than $1 billion project could generate enough electricity to power more than 150,000 homes annually throughout the Upper Midwest. It will use the existing Sherco plant’s grid connections for efficiency and cost savings. In the process, it allows the coal version of Sherco to shutter, keeping with company plans to retire all coal units by the end of 2030.
Coupled with the additional array at Sherco, Xcel intends to purchase power from the 100 MW Apple River solar project in northwestern Wisconsin.
