Electricity Flows From Largest Solar Project In Upper Midwest
Sherco Solar Will Power 150,000 Homes With 710 MW Of Solar Energy, Replacing Nearly Coal Unit
In May 2023, Xcel Energy broke ground on the largest solar array in the Upper Midwest, Sherco Solar. On November 19, 2024, carbon-free electricity began flowing from the project as Minnesota leaders and Minnesota governor Tim Walz gathered at the site.
Phase 1, located in Clear Lake Township, is now complete and includes about 500,000 solar panels. According to Xcel Energy, Phase 1 achieved its initial connection to the Upper Midwest grid in late October, serving customers in the region with more than 220 MW of low-cost solar power. The second and third phases, expected to come online in 2025 and 2026, will be located at Becker Township and will help the project reach 1.5 million solar panels. By using two sites, Xcel Energy can reuse the facility’s existing grid connections and provide customers with power in the most efficient and cost-effective way. All told, Sherco Solar will power 150,000 homes and have a combined capacity of 710 MW.
“Our progress at Sherco Solar shows we’re not just talking about the clean energy future, we’re building it,” said Bob Frenzel, chairman, president, and chief executive officer of Xcel Energy. “This is the first large-scale solar facility we have owned and operated, and it’s an important milestone on Xcel Energy’s path to achieving our carbon-free vision in a way that uses innovative technologies, creates jobs, supports our communities, and ensures reliability for our customers. I commend our employees, contractors and partners who have come together and worked to make this transition a reality.”
According to Xcel Energy, Sherco Solar will provide the lowest-cost solar on Xcel Energy’s system in Minnesota, South Dakota, North Dakota, Wisconsin, and Michigan. When the project was first announced in 2023, plans called for a US$690 million investment in clean energy infrastructure. However, the updated targets call for about US$1.1 billion in clean energy infrastructure investment. According to Xcel Energy, the carbon-free electricity generated at Sherco Solar will qualify for an estimated US$480 million in federal tax credits, and Xcel Energy passes through 100% of those tax credits to customers.
Sherco Solar is creating 400 union construction jobs, plus 12 ongoing operations and maintenance jobs, up from its initial target for 300 jobs. The project provides an opportunity for participants in Xcel Energy’s Power Up workforce and development program, which the PUC and Minnesota Department of Employment and Economic Development were key in shaping. The workforce program is designed to offer opportunities to people who are underrepresented in the energy industry and building trades.
“Sherco Solar is creating hundreds of jobs with family-supporting wages for [International Brotherhood of Electrical Workers] IBEW 292 members, who are keeping the lights on for Minnesotans while building the clean energy infrastructure that will power the state for decades to come,” said Jeff Heimerl, business manager of IBEW Local 292. “Nearly 200 IBEW members helped deliver the first phase of Sherco Solar, and we’re already hard at work on the next phases of the project as we help the state meet its 100% carbon-free energy production goal.”
The project will also contribute an estimated US$350 million in local economic benefits to Sherburne County communities as the Sherco coal plant is retired in stages by 2030. The company has closed or repurposed 24 coal units across the eight states it serves without layoffs. Xcel Energy said that anyone who works at a retiring coal plant who wants a job with the company will have one.
“Today’s ribbon cutting for Phase 1 of the Sherco Solar project represents Xcel Energy’s most recent re-investment here in Sherburne County,” said Gregg Felber, 2024 chair of the Sherburne County Board of Commissioners. “Creation and transmission of needed electricity for Minnesota’s homes and businesses has been a core industry and economic driver in Sherburne County for many decades. While Sherburne County plays no significant regulatory role in such large energy projects, we are pleased that Xcel Energy continues to find value in operating here, providing needed employment, tax base, and community support for our area schools, cities and communities.”
Xcel Energy said that there will be many additional milestones to come at the Sherco plant site, which will play an important role in the company’s vision for the clean energy transition without compromising on affordability or reliability. Earlier this month, Xcel Energy broke ground on a long-duration battery storage pilot with Form Energy, and the company has proposed two additional battery projects at the Sherco site. Battery energy storage is key to maximizing the benefits of renewable energy during periods when the wind isn’t blowing, and the sun isn’t shining. The company’s proposed Minnesota Energy Connection transmission line will link up to 4000 MW of new renewable energy to the Upper Midwest grid at Sherco. This includes Xcel Energy’s recent proposal to expand Sherco Solar by 200 MW through a fourth phase of the project.
