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Xcel Energy has announced plans to build the Upper Midwest’s largest battery energy storage project at its Sherco Energy Hub in Becker, Minnesota. The proposal, filed with the Minnesota Public Utilities Commission, would double the previously approved capacity from 300 to 600 megawatts (MW).

The project is part of a broader regional investment that includes 135.5 MW of new battery storage at Xcel’s Blue Lake facility in Shakopee and an additional 200 MW solar array at the Sherco site in Clear Lake Township.

Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota, said the investment marks a key step toward a more reliable and affordable clean energy future. “Batteries help us store energy when it’s inexpensive to produce and dispatch it when needed,” Shea said.

The battery projects, expected to begin construction in 2026 and serve customers by late 2027, will use lithium iron phosphate (LFP) technology, known for its safety and reliability. Together, the projects are projected to create over 200 union construction jobs and deliver $260 million in local tax benefits.

Joel Smith, president of the Laborers’ International Union of North America–Minnesota and North Dakota, said the initiative supports local workers while helping Minnesota meet its climate goals.

If approved, the projects would leverage federal tax credits of up to 40%, which Xcel plans to pass on to customers through lower energy bills.

Source: xcelenergy.com