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Xcel Energy has started construction on a major Minnesota transmission project aimed at linking up to 4,000 megawatts of new wind and solar generation to the grid, as the utility advances a broader buildout tied to reliability and the state’s energy transition.
According to a press release from Xcel Energy, the company has broken ground on two infrastructure projects: the Minnesota Energy Connection transmission line and the Lyon County Generating Station. Xcel Energy said the projects are intended to help deliver reliable, affordable electricity across the Upper Midwest while supporting Minnesota’s shift toward cleaner energy.
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The Minnesota Energy Connection is a 185-mile transmission line that will connect new wind and solar generation in southwest Minnesota to the grid at the Sherco Energy Hub in Becker. The line is designed to accommodate up to 4 GW of new renewable capacity.
Alongside it, the Lyon County Generating Station is planned as a 420-megawatt natural gas peaking plant. Xcel Energy said the plant will provide always-available generation during periods of peak demand, extreme weather, and lower renewable energy production.
The company said the two projects are designed to address two energy needs: moving renewable energy from where it is produced to where it is needed, and ensuring electricity remains available when demand is high and renewable resources are limited.
Xcel Energy is headquartered in Minneapolis and serves approximately 3.7 to 3.9 million electricity customers and 2.1 to 2.2 million natural gas customers across eight Western and Midwestern states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. In this case, the company’s focus is specifically on Minnesota.
Bria Shea, president of Xcel Energy-Minnesota, North Dakota and South Dakota, said:
"These projects represent the next chapter in Minnesota’s energy transition. 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 projects are located in Garvin in Lyon County, where Xcel Energy said they will create a large energy hub in southwest Minnesota, a region the company described as central to Minnesota’s energy future.
The original report said the transmission line is expected to unlock access to new renewable resources, while the power plant can provide flexible, consistent generation needed to maintain reliable service. It also said the projects are expected to influence other entities to consider building transmission lines.
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