Press Release: Minnesota’s largest utility deepens clean energy commitments in long-range energy plan approved Thursday
Minnesota’s largest utility deepens clean energy commitments in long-range energy plan approved Thursday
DATE: 02/20/2025 CONTACT: Sarah Horner, MCEA, shorner@mncenter.org, 612-868-3024
St. Paul, MN – The latest energy plan approved Thursday for Minnesota’s largest utility company includes robust investments in wind, solar, and battery storage, as well as a commitment to pursue new innovative strategies for powering the grid in the future.
Clean Energy Organizations (CEOs) – including Minnesota Center for Environmental Advocacy (MCEA), Fresh Energy, Sierra Club, and Clean Grid Alliance – applaud the Commission’s approval of Xcel Energy’s latest Integrated Resource Plan (IRP), which maximizes investments in clean energy, minimizes fossil fuels, and maintains the planned retirements of Xcel’s remaining coal units.
Xcel had initially proposed to build approximately six new gas plants to meet its forecasted increase in customer needs through 2030. However, after working cooperatively with parties in the docket, Xcel ultimately agreed to reduce their proposed gas build-out to include only one new gas plant.
The plan the PUC approved Thursday includes the agreement on gas plants, as well as plans for the addition of 3,330 megawatts of wind, 1,550 megawatts of solar, 1,230 megawatts of battery storage through 2030, and plans to pursue what would be Xcel’s first virtual power plant by tapping into the infrastructure of residential solar and batteries. Of these, about 1,000 MW are ready-to-be-built projects approved by today’s Commission decision. Also of note, the Commission ordered continued work for Xcel on diversifying its internal and contracted workforce and a focus on energy efficiency for very low income households.
“This is a great outcome for the climate,” said MCEA Climate Program Director Amelia Vohs. “It avoids the construction of multiple new fossil fuel gas plants and instead invests heavily in clean energy solutions. This will help both Xcel, and Minnesota, stay on track to meet our emissions reductions goals.”
"We are extremely pleased to see the amount of wind, solar, and battery storage in Xcel's Integrated Resource Plan," said Peder Mewis, regional policy director at Clean Grid Alliance. "Even as Xcel Energy anticipates a dramatic increase in demand from data centers and AI, they are demonstrating an ongoing commitment to clean energy and keeping costs as low as possible for their customers by choosing clean, affordable, and reliable energy sources. Well done."
“With today's decision, Minnesota has reaffirmed its reputation for smart, forward-thinking decarbonization," said Allen Gleckner, chief policy officer at Fresh Energy. "The Public Utilities Commission did an excellent job facilitating a thorough process that incorporated input from a wide range of stakeholders. This collaborative effort has resulted in a plan that's good for Minnesotans, the climate, and keeps us on track for a clean energy future."
“Minnesota is once again leading by example in prioritizing bold clean energy investments over fossil fuels. By limiting new gas plants, this decision will benefit Xcel ratepayers by minimizing costs incurred by new fossil fuel infrastructure and keep Minnesota’s largest utility on track to curb their climate pollution. We appreciate the Commission’s work to secure positive steps forward that will help safeguard communities and a healthy climate,” said Margaret Levin, Sierra Club Minnesota chapter director.
Investor-owned utilities in Minnesota are required by law to submit plans every two years to the PUC that outline how they aim to meet their energy demands for the next 15 years.
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