Xcel Energy is seeking about 1,200 MW of new wind projects located in southwest Minnesota, the utility announced Thursday. The renewable resources will help to replace the Sherco coal-fired plant in Becker, Minnesota, which Xcel plans to retire by 2030.
The request for proposals is “one of Minnesota’s largest-ever calls for clean energy projects,” the utility said.
Developers “must have a buildable area that allows for a wind facility with a nominal AC electrical output exceeding 200 MW at each location,” Xcel said in its RFP, and may not rely on aggregated smaller projects at different sites.
Xcel utility subsidiary Northern States Power has been authorized by Minnesota regulators to retire the 1,879-MW Sherco plant in three stages. A 682-MW unit will be taken offline this year, followed by a 680-MW unit in 2026 and the final 517-MW unit in 2030.
Xcel’s RFP seeks new wind projects with planned commercial operations dates by the end of 2027, which will combine with solar and energy storage resources to replace Sherco.
The utility plans to use the retired coal plant’s grid connections to bring new renewables online. Xcel’s proposed Minnesota Energy Connection transmission line is expected to deliver 2 GW of renewable energy, including the new wind resources envisioned in the RFP, to the grid at Sherco. The line, a double-circuit 345-kV transmission line, would run 160-180 miles from Lyon County to Becker and is under review by the Minnesota Public Utilities Commission.
Xcel filed plans for the transmission project in March, and said reviews by the PUC typically take about a year.
“By reusing Sherco’s existing grid connections, Xcel Energy can provide customers with power in the most efficient and cost-effective way,” the utility said Thursday.
Xcel is working with local officials and landowners to identify potential route options for the Minnesota Energy Connection. If both a certificate of need for the project and its route permit applications are approved, Xcel said construction on the line could begin in late 2025 and be completed in 2028.
In July, Minnesota regulators approved a 10-MW/1,000-MWh iron-air battery system to be built by Form Energy at the Sherco plant. ‘Xcel expects the project to be operating by the end of 2025 and will be paired with up to 710 MW of solar at the site.
