Xcel Energy will start constructing a new natural gas peaking plant this summer to support grid reliability, delivering service to customers when renewable energy in southwest Minnesota isn’t available and at times of peak demand, after receiving approvals from the Minnesota Public Utilities Commission.

The 420-megawatt Lyon County Generating Station, to be located near Garvin in Lyon County, will play a critical role in supplying reliable power to the grid during periods when wind and solar energy are not available and when the hottest and coldest temperatures of the year drive energy use up. Peaking plants do not continuously generate energy at full capacity; instead, they operate for a small portion of the year based on the needs of the grid. The energy they provide supports Xcel Energy’s larger plan to retire its remaining coal plants by the end of 2030 while keeping the grid reliable.