Minnesota Public Utilities Commission Approves Energy Storage Project in Freeborn County
St. Paul, MN — The Minnesota Public Utilities Commission (Commission) approved the site and route permits for the Midwater Energy Storage Project, a 150-megawatt battery energy storage system (BESS) and an associated 161-kilovolt transmission line located in Freeborn County.
The Commission included extensive protective conditions in the site permit intended to ensure environmental safety, strengthen emergency preparedness, and reduce risks to the Shell Rock River watershed and surrounding communities.
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Stormwater management: The Permittee (Midwater) must construct stormwater basins designed to accommodate a 1.5-inch rainfall, consistent with the recommendation of the Citizen Advisory Task Force. The Shell Rock River Watershed District will have access to these facilities for regular inspection and approval.
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Insurance requirements: The Commission mandated that Midwater maintain extensive insurance coverage from construction through decommissioning. This includes sudden and accidental pollution coverage and environmental impairment liability insurance. Coverage limits will be determined by a qualified professional’s assessment of a credible worst-case scenario at the project site.
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Decommissioning and remediation fund: Midwater must establish a financial assurance mechanism designed to fund site restoration and respond to potential environmental remediation, including fire or thermal runaway events and potential impacts to the Shell Rock River watershed.
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Local coordination: The Commission amended the site permit to formally invite Freeborn County Environmental Services, Emergency Management Services, and the Albert Lea and Glenville Fire Departments to participate in pre-construction and pre-operation meetings to ensure local first responders are fully integrated into project planning.
Commissioner John Tuma underscored the need to pair innovation with public protection. “People in Glenville, Freeborn County, and beyond made their voices heard, and their concerns truly mattered in this process. In the end, we pushed for the strongest protections we’ve ever applied to a project of this kind. Approving a project while insisting on safeguards is how we balance innovation with responsibility.”
The Midwater Energy Storage Project will support Minnesota’s increasingly renewable energy generation portfolio by providing essential flexibility to store excess wind and solar generation and deliver it when needed. This capability enhances grid reliability and supports statewide clean‑energy goals.
Next Steps
Before construction begins, Midwater must complete several Commission‑required filings and coordination activities. At least 30 days prior to the pre-construction meeting, Midwater will submit its full insurance program and its decommissioning and environmental remediation fund proposal, both of which must align with a qualified worst‑case‑scenario risk assessment. They must also file certificates of construction and operation insurance with the Commission and Freeborn County and continue working closely with local agencies through preconstruction and pre‑operation meetings to ensure emergency plans, training needs, and safety measures are fully integrated. These filings and coordination steps must be completed and approved before any construction activity can commence.
For more information, including docket filings and permitting documents, please visit the Commission’s project page.
About
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.
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