Last week, the Minnesota Public Utilities Commission (Commission) approved a site permit for Sherco Solar 3 project, Xcel Energy’s 250 megawatt (MW) solar facility in Clear Lake. Upon completion, the Sherco Solar projects will be one of the largest solar facilities in the country at 710 MW.

The solar generation will replace much of the electricity produced by the coal-fired Sherco Generating Plant Unit 2 that ceased operations in 2023. The Sherco Solar projects fulfill a requirement included in Xcel Energy’s 2020-2034 Upper Midwest Integrated Resource Plan for the company to procure approximately 720 MW of solar generation.

According to Commission Chair Katie Sieben, “Sherco Solar will help deliver more reliable, affordable and cleaner electricity. It’s a win for workers, consumers, and the environment.”

Construction for this project is anticipated to begin in the fall of 2024 and construction on all parts of the Sherco projects are expected to be complete in 2026. Xcel estimates the Sherco Solar 3 project will provide almost 400 construction jobs and millions in wages for workers.

Xcel also anticipates that the project will qualify for federal tax credits which will help lower overall project costs. In a separate proceeding in 2023, the Commission found that the project was in the public interest and approved the project with a cost recovery cap, subject to final permitting.

In addition to the solar facilities at the site, the Commission also previously approved a 10 MW battery pilot project at the site. The pilot features an iron-air battery with 100-hour storage capacity.