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Xcel Energy has broken ground on two energy infrastructure projects in Minnesota that the company said will serve customers across the Upper Midwest and support the state’s energy transition.
The projects are the Minnesota Energy Connection transmission line and the Lyon County Generating Station. Both are expected to be completed in 2028.
The Minnesota Energy Connection is a 185-mile transmission line designed to connect up to 4,000 megawatts of new wind and solar generation in southwest Minnesota to the grid at the Sherco Energy Hub in Becker.
The Lyon County Generating Station is a 420-megawatt natural gas peaking plant. According to the company, it will provide energy generation to support reliability during periods of peak demand, extreme weather and lower renewable energy production.
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"These projects represent the next chapter in Minnesota’s energy transition", Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota, said. "As we retire coal generation and add more renewable energy, Xcel Energy is investing in the infrastructure needed to deliver reliable electricity our customers depend on and keep bills as low as possible. The Minnesota Energy Connection and Lyon County Generating Station are real-world examples of how utility companies can strike that balance."
Xcel Energy said the two projects will create a major energy hub in southwest Minnesota. The transmission line will unlock access to new renewable resources, while the power plant will provide the flexible generation needed to support those resources and maintain dependable service.
"Building a cleaner energy future requires both generation and the transmission infrastructure to move that energy where it’s needed", Sandra Johnson, senior vice president of transmission, Xcel Energy, said. "The Minnesota Energy Connection will connect thousands of megawatts of new renewable energy to the grid, while the Lyon County Generating Station provides the reliability needed to support that transition. Together, the projects create a more flexible and resilient grid for customers across the Upper Midwest."
The company also said the projects will bring economic benefits to southwest Minnesota. Construction is expected to support hundreds of jobs, and the Lyon County Generating Station alone is projected to generate approximately $300 million in property tax revenue over its operating life.
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