Xcel Energy has begun power generation from the first phase of its 710-MW solar complex in Minnesota, which is set to replace a retired coal unit at the company's Sherco coal-fired power station. The initial 220-MW photovoltaic (PV) farm, known as Sherco Phase 1, is now supplying electricity to the grid, serving customers across the Upper Midwest.
The Sherco solar project is part of a larger initiative to replace the capacity of the first coal unit at the Sherco station, which was decommissioned in late 2023. The full PV capacity will be rolled out in three stages, with the second and third phases expected to come online in 2025 and 2026, respectively.
Once completed, the USD 1.1-billion solar complex will be one of Minnesota's largest, generating enough electricity to power approximately 150,000 homes annually. The project is eligible for around USD 480 million in federal tax credits. Xcel Energy will own and operate all three phases of the solar park.
Looking ahead, Xcel plans to expand the facility with a fourth phase, adding an additional 200 MW of capacity, as the Sherco thermal power plant is slated for closure by 2030. The company is also developing a long-duration battery storage pilot project at the site.
