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Xcel Seeks Approval for 200 MW Distributed Battery Network in Minnesota

The filing asks regulators to fund host-sited batteries operated as a single capacity resource across the grid.

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Xcel Energy's Riverside power plant in Minnesota which was converted from coal to combined cycle gas turbines (CCGT) in 2009. Credit: Xcel Energy

Overview

  • Xcel filed its Capacity*Connect proposal on Oct. 3 to procure up to 200 MW of distributed batteries by 2028 under Minnesota Public Utilities Commission review.
  • The utility requests a budget ranging from $152 million for a 50 MW minimum to $430 million for the full 200 MW deployment.
  • Batteries of 1–3 MW would be installed at businesses, industrial sites, and nonprofits, with hosts receiving payments while Xcel operates the assets.
  • Sparkfund would secure sites, procure equipment and services, manage data flows to unlock value streams, and provide long-term operations and maintenance.
  • The plan supports Xcel’s approved goal of 600 MW of storage by 2030, drawing praise for grid planning innovation and criticism over utility control, focus on bulk-system benefits, pace, and the exclusion of certain resilience facilities.