Minnesota regulators greenlight final site permit for Xcel’s massive solar project

Xcel Energy’s plan to help replace an enormous retiring coal plant with one of America’s largest solar farms got closer to becoming a reality when the Minnesota Public Utilities Commission (PUC) on July 18 voted unanimously to approve a site permit in Sherburne County, Minn., for the electric utility’s 250-megawatt (MW) solar facility.

This is the last of three large solar projects needed to fulfill Xcel’s climate goals and to meet a state requirement for a 100-percent carbon-free grid by 2040, though the utility still must make several compliance filings with the state before starting construction.

Specifically, the Minnesota PUC approved the site permit for Xcel’s 250-MW solar facility in Clear Lake, Minn. Upon completion, the Sherco Solar 3 Project will be one of the largest solar facilities in the country, totaling 710 MW.

“Sherco Solar will help deliver more reliable, affordable, and cleaner electricity,” said Minnesota PUC Chair Katie Sieben in a statement. “It’s a win for workers, consumers, and the environment.”

Construction for the project is slated to start this fall, with construction on all parts of the Sherco project expected to be completed in 2026, according to the commission.

Xcel estimates the Sherco Solar 3 Project will provide almost 400 construction jobs and millions in wages for workers, and anticipates that the project will qualify for federal tax credits, which would help lower overall project costs, the PUC said.

The solar generation that will be produced will replace much of the electricity produced by the coal-fired Sherco Generating Plant Unit 2, which ceased operations in 2023, and the Sherco projects will fulfill a requirement included in Xcel’s 2020-2034 Upper Midwest Integrated Resource Plan for the company to procure about 720 MW of solar generation, said the PUC.

In a separate proceeding in 2023, the commission found that the project was in the public interest and approved it with a cost recovery cap that’s subject to final permitting.

The PUC also said that, in addition to the solar facilities at the site, it has approved a 10 MW battery pilot project at the site that features an iron-air battery with 100-hour storage capacity.

The post Minnesota regulators greenlight final site permit for Xcel’s massive solar project appeared first on Daily Energy Insider .