MINNEAPOLIS — Minnesota-based Xcel Energy announced Monday it broke ground on a new solar project, which the company says will be the largest array in the Upper Midwest when the two-year construction plan is complete.
The energy company says with its blueprint for the Becker, Minnesota, Sherco Solar facility, 100,000 homes will be powered by clean energy, making way for a projected triple that amount by 2028. Officials say the project will help the region transition into cleaner energy use by creating a carbon-free replacement for customers currently depending on the nearby Sherco Power Plant's coal output.
The $690 million investment in clean energy infrastructure is also expected to create at least 300 new construction jobs while contributing an estimated $240 million in economic benefits to the region.
“This is one of the biggest solar projects in the country, and it demonstrates how we’re leading the clean energy transition reliably and affordably for our customers,” said Bob Frenzel, chairman, president and CEO of Xcel Energy, in a statement Monday.
The first phase of the project, which started construction in April, is expected to be completed in Clear Lake Township by 2024. The second phase, a site located in Becker Township, will follow in 2025.
"It’s providing targeted funding to repurpose existing energy infrastructure, like Sherco’s old coal plant, with clean energy,” said Sen. Tina Smith in a statement. “Minnesota is on the way to 100% clean energy by 2040 and projects like this are exactly the type of bold action we need to address the climate emergency."
The Minnesota Public Utilities Commission approved the final plan for Sherco Soalr in September 2022.
“Sherco Solar is a key piece of Xcel Energy’s vision to reduce carbon emissions 85% by 2030 and to achieve Minnesota’s new standard of 100% carbon-free energy by 2040,” said Chris Clark, president of Xcel Energy-Minnesota, North Dakota, South Dakota. "Renewable energy projects like this one allow us to take advantage of federal tax credits, saving our customers money while leading the clean energy transition."
Earlier this year, Governor Tim Walz signed legislation vowing to cut carbon emissions and create more clean-energy jobs over the next several years. The bill requires Minnesota Utility Companies to transition to 100% carbon-free electricity by 2040.
"What this bill does and makes it very clear that no longer is this debate about moving towards clean energy future on sustainability of the planet and our economic future are no longer divided, they run hand in hand," said Gov. Walz at the time of the bill's signing.
The bill aims to further shift utilities away from fossil fuels to wind and solar, but it also allows them to use hydropower, biomass, hydrogen and existing nuclear plants to go carbon-free.
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