Minnesota Commission Approves Xcel Energy’s 600-Megawatt Sherco Battery Project to Support Energy Transition

The Minnesota Public Utilities Commission on May 26 approved a site permit for Xcel Energy to develop the Sherco South and West Battery Energy Storage Project, a 600-megawatt battery facility planned at the site of the Sherburne County Generating Station in Becker, Minnesota. The decision advances Minnesota’s efforts to replace retiring coal-fired generation with battery storage and other clean energy resources while maintaining electric system reliability.

Construction of the facility is expected to begin later this year, with the project scheduled to enter service in 2027. The battery system will store electricity generated during periods of high wind and solar output and discharge power during times of stronger demand, helping stabilize the grid as Minnesota expands renewable energy development.

The decision adds to the broader transformation underway at the Sherco site, which has become a focal point of Minnesota’s clean energy transition. Xcel Energy retired one coal-fired unit at the Sherburne County Generating Station in 2023 and plans to close additional units later this decade. The utility has also advanced major solar development and transmission investments at the Becker location to replace retiring fossil fuel generation with cleaner energy resources while preserving grid reliability.

In reviewing the application, the commission attached conditions tied to public safety, environmental protection, and workforce standards. The permit requires Xcel Energy to coordinate with local emergency responders on fire prevention planning and emergency response procedures for the battery facility. The utility must also implement vegetation management and habitat restoration measures and continue working with the Minnesota Department of Natural Resources to limit impacts on wildlife and surrounding land.

The commission also directed Xcel Energy and its contractors to pay prevailing wages during construction and provide regular workforce reporting updates. Minnesota regulators have increasingly identified large-scale battery storage as essential to maintaining reliable electric service as coal retirements accelerate and renewable energy deployment expands statewide.