Xcel Energy’s Upper Midwest Plan Seeks to Add 4.3 Gigawatts of Renewables, Phase Out Coal by 2030

The Minnesota Public Utilities Commission on Feb. 21 approved Xcel Energy’s Upper Midwest Integrated Resource Plan, which outlines the utility’s energy resource portfolio for 2024-2040 to improve reliability, energy efficiency, and affordability. The plan includes measures to protect consumers against excessive prices, protect grid systems against extreme weather, integrate more renewable energy resources, and reduce fossil fuel use for electricity generation. Xcel Energy worked with the commission and the Minnesota Department of Commerce to incorporate the needs of a broad range of stakeholders, from consumers to labor unions and clean energy organizations.

Key energy investments in the approved plan include new renewable energy and energy storage assets, extended power purchase agreements with natural gas plants, expanding energy efficiency programs, and lengthening nuclear plant operations to 2050s.

Xcel’s resource plan highlighted the importance of consumer protection and affordable electricity prices and included strategies to minimize rate increases. The commission ensured minimal cost burden to ratepayers from high energy demand sources such as AI data centers and capped costs of certain projects.

The utility also plans to ramp up clean energy production, with plans to add 4,200 megawatts of new renewable energy and storage by 2030. Additionally, the resource plan outlined decarbonization strategies to reduce carbon emissions and reliance on fossil fuels for power generation. Xcel committed to retiring all coal-fired power plants by 2030 and introducing clean energy alternatives such as wind, solar, and energy storage assets. By 2030, the utility estimates its carbon emissions will reduce by 80 percent compared to 2005 levels.

Clean energy organizations such as the Environmental Law & Policy Center and Vote Solar commended Xcel’s agreement with the commission, hailing it as a key step for Minnesota’s clean energy transition and imploring the utility to do more.