Overview
- Xcel filed on Oct. 31 to expand Sherco energy storage to 600 MW, described as the Midwest’s largest, to support the coal plant’s planned 2030 retirement.
- The package includes 135.5 MW of battery storage at the Blue Lake facility in Shakopee and a 200 MW fourth phase of Sherco Solar.
- Construction is targeted for 2026 with the batteries planned in service by late 2027 using four-hour lithium iron phosphate technology.
- Existing grid interconnections would allow the hub to store energy from wind, solar, nuclear and natural gas resources for use during peak demand.
- Xcel expects federal tax credits to offset about 40% of Sherco solar and battery costs and 30% at Blue Lake, with savings passed through to customers.