Xcel Energy plans to build the Midwest’s largest battery energy storage site at the Sherco Energy Hub in central Minnesota. The project is among a series of investments that will strengthen the region’s energy security and expand the company’s investment at Sherco and beyond.

“We’re making a significant investment in battery storage because we see it as a critical part of Minnesota’s energy future,” according to Bria Shea, President of Xcel Energy-Minnesota, North Dakota and South Dakota. “Batteries help us store energy when it’s inexpensive to produce and dispatch it when needed, allowing us to continue delivering reliable electricity to customers while keeping bills low.”

The proposal, filed with the Minnesota Public Utilities Commission, will:

• Double the amount of battery storage adjacent to the Sherco coal plant in Becker, which is scheduled to retire by the end of 2030. The Commission previously approved 300 megawatts of storage. The new proposal increases the capacity to 600 megawatts.
• Add 135.5 megawatts of battery storage at the company’s Blue Lake facility in Shakopee.
• Expand the company’s Sherco Solar facility with an additional 200-megawatt solar array in Clear Lake Township.

If approved, the company intends to start construction on the battery storage projects in 2026, with the batteries serving customers by late 2027. The projects will use lithium iron phosphate (LFP) battery cell technology, which has a strong track record for reliability and safety. LFP batteries discharge energy in four-hour increments and are quick to recharge, allowing for regular use.