Xcel Energy has submitted its proposal to build a 600-megawatt battery storage plant at the Sherco Energy Hub in Minnesota, which would make it the largest of its kind in the region. This expansion seeks to strengthen energy security, reduce the use of coal and optimize the use of renewable sources.
Construction of the battery storage plant
The company filed the plan with the Minnesota Public Utilities Commission, proposing to double the previously approved capacity. In addition to the 300 MW authorized, another 300 MW will be added, making Sherco a strategic hub for regional energy storage. In addition, an additional 135.5 MW of capacity is planned at Blue Lake(Shakopee) and the Sherco solar plant will be expanded with an additional 200 MW at Clear Lake.
According to Xcel Energy, the technology used will be of LFP (lithium iron phosphate) cells(lithium iron phosphate) cells, known for their high reliability and discharge capacity of up to four hours. These systems will make it possible to store electricity generated by wind, solar, nuclear and natural gas sources for release at times of high demand.
The Sherco battery project will generate more than 150 construction jobs, all unionized, and will contribute close to $200 million in local taxes. The Blue Lake project will generate 55 jobs and an estimated tax contribution of $60 million. These developments will benefit from federal tax credits of up to 40%, allowing Xcel Energy to pass these benefits directly to consumers through lower bills.
In addition, Xcel Energy plans a fourth phase for Sherco Solar, bringing its total capacity to 910 MW by 2029. The plant, the largest in the Upper Midwest in solar generation, has two operational phases, while the third phase is under construction.
This set of projects consolidates Xcel Energy as a key player in the transition to a decarbonized electricity grid in the central United States. In addition to reducing its dependence on coal, the company is committed to an infrastructure that integrates renewable energies, improves grid resilience and maintains a focus on affordability for users.
Collaboration with unions such as LIUNA underscores the social focus of this transformation, supporting local communities through quality employment and training. Xcel’s strategy aligns with Minnesota’s climate goals, driving a cleaner, more resilient energy matrix.
Source and photo: Xcel Energy
