Xcel Energy, a prominent US utility, has revealed an extensive plan to decarbonize its operations in the Midwest, including the construction of 3.6 gigawatts (GW) of new renewable power generation capacity and the establishment of 600 megawatts (MW) of battery energy storage system (BESS) facilities.
While specifics regarding project locations and the division between solar and wind projects were not provided, the utility asserted that the initiative is designed to markedly cut its carbon emissions by 80-88% by 2030. A key component of the strategy involves extending operations at Xcel's two nuclear plants in Minnesota, the Monticello and Prairie Island plants, with a combined capacity of 1.7GW.
The integration of renewable power, BESS, and nuclear energy aligns with Xcel's commitment to support Minnesota's ambitious goal of achieving 100% “clean electricity” for its energy demand by 2040.
Addressing concerns about the mix of nuclear and renewable energy, Ryan Long, President of Xcel Energy in Minnesota, South Dakota, and North Dakota, expressed confidence in the company's direction, stating, “This new proposal builds on our already-approved plans to retire all coal plants by 2030 and replace them with nation-leading amounts of renewable energy like wind and solar, as we transition to a clean, secure energy future.”
As part of the comprehensive plan, Xcel aims to add 2.2GW of “always-available resources” by the end of the decade, serving as backup power for the renewables portfolio and addressing peak energy demand. Regarding the nature of these dispatchable resources, Xcel noted, “They'll only run when needed, meaning they'll have very low emissions.”
The announcement follows Xcel's recent retirement of a coal-fired power plant in Minnesota. The utility's commitment includes replacing coal facilities with 710MW of new solar capacity, contributing to its existing solar capacity of 2.7GW as of the end of 2021, as part of its ongoing efforts to further decarbonize operations.
