St. Paul, MN — The Minnesota Public Utilities Commission (Commission) approved the site permit for Xcel Energy’s Sherco South & West Battery Energy Storage Project, an up to 600‑megawatt facility that will play a central role in Minnesota’s shift toward a cleaner and more reliable electric system.
As the Sherburne County Generating Station moves away from coal-fired operations, the new battery installation will help ensure Xcel Energy continues to deliver reliable power to its customers. By bringing largescale storage to a site long used for power generation, the project provides the kind of flexibility needed to make better use of Minnesota’s growing wind and solar resources – capturing energy when it’s abundant and delivering it when demand is highest.
The Commission emphasized that storage of this scale is becoming essential as the state modernizes its electric system. The Sherco project will help maintain the reliability Minnesotans expect while supporting the broader clean energy goals of the state.
“The approval of the Sherco storage project reflects a commitment to a reliable grid and is a wonderful example of the energy transition,” said Commission Chair Katie Sieben. “This project strengthens the reliability of the grid, supports the local community, and creates more than 150 high quality jobs. This investment will help ensure Minnesota’s energy future remains clean, affordable and dependable.”
In reviewing the application, the Commission focused on ensuring the project meets Minnesota’s energy needs while addressing community and environmental considerations. The approved permit includes:
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Safety measures developed with local first responders, including detailed fire response and emergency protocols.
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Environmental protections such as a comprehensive vegetation management plan, habitat restoration requirements, and coordination with the Minnesota Department of Natural Resources to reduce impacts on land and wildlife.
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Economic provisions requiring Xcel Energy and its contractors to pay prevailing wages and regularly report workforce data during construction.
Construction is expected to begin later this year, with the facility coming online in 2027.
Full record information available in Docket 25-319.
The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
