Xcel Energy expands massive solar + storage project to offset retiring Minnesota coal plant

Good News Thursday!

Minnesota’s biggest coal plant is transforming into one of America’s largest clean energy centers.

Xcel Energy just announced a major expansion at its Sherco Energy Hub in Becker, doubling battery storage from 300 megawatts to 600 megawatts. That is enough to power more than 150,000 homes during peak demand. When complete, it will be the largest battery energy storage site in the Midwest and a cornerstone of Minnesota’s clean power future.

The Sherco Energy Hub marks a turning point for a community once defined by coal. Here is what is coming:

• 600 MW of battery storage at Sherco, reusing the coal plant’s existing grid infrastructure
• 135 MW of new batteries at Xcel’s Blue Lake facility in Shakopee
• 200 MW of additional solar at the Sherco Solar site in Clear Lake Township

These investments bring more than cleaner power. Batteries strengthen the grid, prevent blackouts, and store low-cost energy for use when demand peaks. They also bring good jobs and local investment, including about 300 union construction jobs and ninety million dollars in community development tied to the Sherco Solar expansion.

“These batteries help us store energy when it is inexpensive to produce and dispatch it when needed,” said Bria Shea, president of Xcel Energy in Minnesota, North Dakota, and South Dakota. “They are a critical part of Minnesota’s energy future.”

The new systems will use lithium iron phosphate (LFP) batteries, a safe, durable, and fast-charging technology suited for large-scale energy storage. Both projects qualify for federal clean energy tax credits, which means customers will directly benefit through lower long-term energy costs.

This expansion supports Minnesota’s goal of reaching 100 percent carbon-free electricity by 2040. By combining solar, batteries, and smart grid planning, Xcel Energy is building a modern, balanced energy system that works for both people and the planet.

The Sherco Energy Hub is more than a clean power project. It is a model for how legacy fossil sites can anchor a new energy economy.

• Coal sites can become clean energy centers.
• Workers can stay on the job, building batteries instead of burning fuel.
• And communities can grow stronger instead of being left behind.

Xcel’s investment shows what is possible when clean energy, local jobs, and smart policy align.

Should more utilities be turning old fossil sites into clean energy hubs like this?

https://www.solarpowerworldonline.com/2025/11/xcel-energy-expands-massive-solar-storage-project-to-offset-retiring-minnesota-coal-plant/