The Minnesota Public Utilities Commission approved Xcel Energy’s 2019 Integrated Resources Plan (IRP), which guides the utility’s direction over the next 15 years.
Xcel is proposing to lower carbon emissions by more than 85% from electricity provided to its Upper Midwest customers, relative to 2005 levels. By 2032, Xcel promises more than 80% its electricity will be generated from carbon-free resources.
The utility plans to acquire or build up approximately 3,150 MW of utility scale solar, approximately 2,650 MW of wind and 250 MW of storage capacity by 2034. By 2032, Xcel says it will have added 2,150 MW of new wind and 2,500 MW of new solar. Beyond 2032, the plan also includes an additional approximately 1,100 MW of renewables.
Last year, Xcel altered its IRP after pushback from some environmental groups. Instead of building a combined cycle gas turbine plant at the Sherco coal site in Becker, Minnesota, the utility proposed building four small natural gas-fired facilities in separate locations.
One new natural gas combustion turbine would be in Lyon County, Minnesota, and another would be located near Fargo, North Dakota. The company would also repower two other natural gas facilities.
Notably, Xcel Energy reported the combustion turbines are planned to be built with technology that can be used to maintain grid stability while not burning fuel and designed to enable the use of hydrogen in the future.
Xcel plans to retire all coal-fired plants in the region by 2030; the Sherco 3 plant will close in 2030, following the closure of the Allen S. King coal plant in 2028. The Commission is requiring Xcel to develop remediation plans with communities affected by plant closures and to work with state agencies and labor organizations to develop plans to support affected workers.
“As the company transitions away from coal, it will also work with stakeholders to seek approval for additional ‘always available’ power sources later this decade, to help back up wind and solar and maintain grid stability and reliability,” a company spokesperson said.
Under the IRP, Xcel will maintain operations at the Monticello nuclear station (pictured) at least through 2040.
