Minnesota regulators have granted a crucial permit for Xcel Energy’s ambitious plan to build one of America’s largest solar farms, marking a significant step in the utility’s transition from coal to renewable energy.
The Minnesota Public Utilities Commission (PUC) approved a site permit for the Sherco 3 solar project in Sherburne County, the last of three large-scale solar installations planned to partially replace the retiring Sherburne County Generating Station, commonly known as Sherco.
America’s Largest Solar Farm Sherco 3 solar project estimated to cost $434 million
The Sherco 3 solar project, estimated to cost $434 million, will cover approximately 1,780 acres and is part of a larger $1.1 billion initiative that will generate up to 710 megawatts of power, enough to supply roughly 150,000 homes. This development is crucial for Xcel as it phases out its coal-fired generators and moves towards a carbon-free future.
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Xcel Energy closed the first of three coal-fired generators at the Sherco plant on December 31, 2023, with plans to retire the remaining two units in 2026 and 2030. While the solar projects will not fully replace the 2,220 megawatts of electricity generated by the coal plant, they represent a significant step in reducing carbon emissions and aligning with Minnesota’s clean energy goals.
The utility cites several advantages to building the solar facilities at the Sherco site, including the ability to utilize existing transmission infrastructure, which will expedite the connection to the grid[1]. Additionally, the Sherco 3 project is expected to create about 400 union construction jobs and help maintain the local tax base as the coal plant is phased out.
In addition to the solar installations, Xcel plans to construct an innovative long-duration battery system near the coal facility to store variable renewable power. This project aligns with Xcel’s broader strategy to achieve 88% carbon-free energy production in the Upper Midwest by 2030.
The approval of the Sherco 3 solar project permit represents a significant milestone in Minnesota’s energy transition, reflecting a broader trend of utilities shifting from fossil fuels to renewable energy sources.
