Xcel seeks development proposals for new wind power.

Byline: Brian Johnson

Minneapolis-based Xcel Energy is seeking development proposals for roughly 1,200 megawatts of new wind power, one of its largest-ever solicitations for clean energy projects, the company said Thursday.

Specifically, Xcel Energy said it wants to develop wind projects in southwest Minnesota and have them in operation by the end of 2027. Combined with solar and energy storage projects, the projects will replace the capacity of the coal-fired Sherco plant in Becker. Xcel plans to close the Sherco plant by 2030.

The wind projects are designed to generate enough energy to power 485,000 homes per year on average, Xcel said in a press release. Details about the solicitations are available at Xcel's website.

"Xcel Energy is a national leader in wind energy, which has saved our Upper Midwest customers $1.6 billion since 2017," said Chris Clark, president of Xcel Energy-Minnesota, South Dakota and North Dakota, said in a statement. "Wind energy is abundant across the states we serve, and we're excited to see developers' proposals that will benefit our customers."

The solicitations come at a time when the Public Utilities Commission is reviewing plans for Xcel Energy's proposed Minnesota Energy Connection transmission line. Xcel said the line would deliver 2,000 megawatts of renewable energy, including the new wind energy, to the grid at Sherco. The line would run 160 to 180 miles from Lyon County to Becker.

In April, Xcel broke ground on what it describes as the Upper Midwest's largest solar project near the Sherco plant. On average, the 710-megawatt Sherco Solar project will generate enough electricity to power more than 150,000 homes each year and fully replace the first Sherco coal unit, which is scheduled to close later this year, Xcel said.

Xcel said it has also received state approval for a "long-duration" battery storage pilot project at the site.

Xcel projects have been getting a big boost from federal money in recent days.

On Wednesday, Xcel said two of its projects have been awarded "a significant portion" of a $464 million U.S. Department of Energy grant to "expand transmission lines, boost reliability and affordability, and open up capacity to add new electricity generation to the grid."

The grant will fund about a quarter of the cost for the projects, Xcel said.

The projects are part of the Joint Targeted Interconnection Queue (JTIQ), a collaboration of the Midcontinent Independent System Operator (MISO) and the...